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Palantir Technologies Inc. (PLTR) Outpaces Stock Market Gains: What You Should Know

Palantir Technologies Inc. (PLTR) closed the most recent trading day at $7.86, moving +1.03% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.2%.

Heading into today, shares of the company had lost 8.58% over the past month, outpacing the Business Services sector's loss of 12.24% and the S&P 500's loss of 9.94% in that time.

Investors will be hoping for strength from Palantir Technologies Inc. as it approaches its next earnings release. On that day, Palantir Technologies Inc. is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $474.58 million, up 21.02% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.03 per share and revenue of $1.9 billion. These totals would mark changes of -76.92% and +23.3%, respectively, from last year.

Any recent changes to analyst estimates for Palantir Technologies Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Palantir Technologies Inc. currently has a Zacks Rank of #5 (Strong Sell).

Investors should also note Palantir Technologies Inc.'s current valuation metrics, including its Forward P/E ratio of 259.33. This represents a premium compared to its industry's average Forward P/E of 24.25.

Also, we should mention that PLTR has a PEG ratio of 8.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry currently had an average PEG ratio of 1.91 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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