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As the technology sector continues to evolve, a new generation of up-and-coming companies is gaining traction. Among them, Palantir Technologies ((PLTR - Free Report) ), AppLovin ((APP - Free Report) ), and Vertiv ((VRT - Free Report) ) stand out with impressive growth forecasts, stock price momentum, and favorable industry tailwinds. Each of these companies operates in a unique niche, while also leveraging robust business models within long-term economic trends.
Investors have taken notice of their potential. AppLovin, in particular, boasts a Zacks Rank #1 (Strong Buy), signaling strongly trending earnings revisions and analyst confidence. Meanwhile, Palantir holds a Zacks Rank #3 (Buy), with earnings supported by its expanding role in artificial intelligence and international affairs. Vertiv, with a Zacks Rank #3 (Hold), is making waves in the critical infrastructure market, catering to the growing demand for cloud computing and data centers for Artificial Intelligence.
With strong fundamentals and industry-specific growth drivers, these three tech stocks are becoming key players in their respective fields, attracting attention from growth-focused investors. Each of these stocks has shown considerable market outperformance year-to-date (YTD). Let’s dive deeper into what makes each of these companies stand out.
Palantir Technologies has secured its place in the spotlight with its recent inclusion in the S&P 500, further validating the company’s growing influence. Known for its cutting-edge data analytics and AI-driven solutions, Palantir is uniquely positioned within two key trends: the expansion of artificial intelligence (AI) and rising geopolitical tensions. Its role as a trusted intelligence partner to governments and corporations worldwide has made it a go-to for AI applications in defense, cybersecurity, and strategic decision-making.
One of Palantir’s standout products is AIP (Artificial Intelligence Platform), which has gained significant traction in providing practical, real-world AI solutions for various industries. As global demand for AI and data-driven insights continues to rise, AIP is positioned to be a key revenue driver for the company, exemplifying how AI can enhance decision-making across sectors.
Despite its premium valuation—trading at over 100x forward earnings—Palantir is forecasted to deliver solid growth, with sales expected to grow 24.2% this year and another 21.5% next year. The company’s earnings are projected to rise 44% this year, followed by 22.6% growth in 2025, demonstrating its ability to capitalize on the expanding AI market. While its valuation may seem steep, Palantir’s strategic position and growth potential could justify the premium, especially as AI becomes increasingly central to both business and defense sectors.
Notably, Palantir's profitability has seen a meaningful shift over the past two years, transitioning from losses to sustained profitability. The company’s gross margins have consistently hovered around 80%, highlighting the efficiency of its core business. However, its net profit margins have climbed to 16.3% recently, reflecting the success of its scalable business model. This profitability inflection is a strong indicator that Palantir's focus on AI and data analytics is translating into more consistent bottom-line growth, a trend that appears to be accelerating.
Image Source: Zacks Investment Research
Vertiv (VRT - Free Report) : AI and Cloud Infrastructure
Vertiv (VRT - Free Report) is another company well-positioned to benefit from the surging demand in AI and cloud computing industries. Specializing in providing critical infrastructure for data centers, Vertiv is at the forefront of supporting the backbone of AI-driven businesses. With Oracle’s Larry Ellison discussing plans to build 1,000-2,000 new data centers, companies like Vertiv stand to benefit immensely from the expected rise in global data storage and processing needs.
Vertiv's growth story is promising, with an estimated earnings per share (EPS) growth of 29.6% annually over the next three to five years. While the company’s earnings revision trend has flattened recently, it had been trending upward for more than a year, indicating strong analyst confidence prior to the recent pause. Many analysts believe the market may still be underestimating the full impact the AI boom will have on Vertiv’s growth. As AI continues to permeate industries, the demand for data centers and related infrastructure is expected to soar, creating further room for growth and future earnings revisions.
Trading at 37.6x forward earnings, Vertiv’s valuation, while elevated, reflects the company’s robust positioning in the data center market and its long-term growth prospects. Although this level puts VRT’s valuation well above the broad market and its five-year median of 22.4x, it is still below the industry average.
Image Source: Zacks Investment Research
AppLovin (APP - Free Report) : Digitial Advertising Rising Star
AppLovin (APP - Free Report) has carved out a significant niche within the rapidly growing digital advertising space, with a particular focus on mobile ads. As mobile becomes the dominant platform for digital engagement, AppLovin is poised to capitalize on this shift. By 2028, 70% of total ad spending is expected to be generated through mobile platforms, positioning AppLovin as a leader in this space.
The global online advertising market was valued at $236.9 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 15.7% through 2030. AppLovin’s sales are expected to mirror this growth, with forecasts of a 35.2% increase in revenue this year and 13.5% next year. In terms of profitability, AppLovin is projected to grow its EPS by 20% annually over the next three to five years, making it a compelling play for investors seeking exposure to the burgeoning digital advertising market.
What sets AppLovin apart is its strong earnings revision trend, with estimates having been raised by as much as 23.1% over the last two months. This indicates that analysts are increasingly bullish on the company’s near-term prospects. Similar to Vertiv, AppLovin trades at a premium valuation of 37.3x forward earnings, reflecting the market’s confidence in its ability to capitalize on the growth of mobile advertising.
Image Source: Zacks Investment Research
Should Investors Buy APP, PLTR and VRT Shares?
All three of these companies—Palantir, Vertiv, and AppLovin—offer compelling growth stories, each aligned with key technological trends that are reshaping industries. While they come with elevated valuations, their growth potential, strong industry tailwinds, and upward earnings revisions make them attractive investments for those willing to bet on the future of AI, data infrastructure, and digital advertising.
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Next Tech Wave: PLTR, APP, and VRT on the Rise
As the technology sector continues to evolve, a new generation of up-and-coming companies is gaining traction. Among them, Palantir Technologies ((PLTR - Free Report) ), AppLovin ((APP - Free Report) ), and Vertiv ((VRT - Free Report) ) stand out with impressive growth forecasts, stock price momentum, and favorable industry tailwinds. Each of these companies operates in a unique niche, while also leveraging robust business models within long-term economic trends.
Investors have taken notice of their potential. AppLovin, in particular, boasts a Zacks Rank #1 (Strong Buy), signaling strongly trending earnings revisions and analyst confidence. Meanwhile, Palantir holds a Zacks Rank #3 (Buy), with earnings supported by its expanding role in artificial intelligence and international affairs. Vertiv, with a Zacks Rank #3 (Hold), is making waves in the critical infrastructure market, catering to the growing demand for cloud computing and data centers for Artificial Intelligence.
With strong fundamentals and industry-specific growth drivers, these three tech stocks are becoming key players in their respective fields, attracting attention from growth-focused investors. Each of these stocks has shown considerable market outperformance year-to-date (YTD). Let’s dive deeper into what makes each of these companies stand out.
Image Source: Zacks Investment Research
Palantir Technologies (PLTR - Free Report) : AI Juggernaut
Palantir Technologies has secured its place in the spotlight with its recent inclusion in the S&P 500, further validating the company’s growing influence. Known for its cutting-edge data analytics and AI-driven solutions, Palantir is uniquely positioned within two key trends: the expansion of artificial intelligence (AI) and rising geopolitical tensions. Its role as a trusted intelligence partner to governments and corporations worldwide has made it a go-to for AI applications in defense, cybersecurity, and strategic decision-making.
One of Palantir’s standout products is AIP (Artificial Intelligence Platform), which has gained significant traction in providing practical, real-world AI solutions for various industries. As global demand for AI and data-driven insights continues to rise, AIP is positioned to be a key revenue driver for the company, exemplifying how AI can enhance decision-making across sectors.
Despite its premium valuation—trading at over 100x forward earnings—Palantir is forecasted to deliver solid growth, with sales expected to grow 24.2% this year and another 21.5% next year. The company’s earnings are projected to rise 44% this year, followed by 22.6% growth in 2025, demonstrating its ability to capitalize on the expanding AI market. While its valuation may seem steep, Palantir’s strategic position and growth potential could justify the premium, especially as AI becomes increasingly central to both business and defense sectors.
Notably, Palantir's profitability has seen a meaningful shift over the past two years, transitioning from losses to sustained profitability. The company’s gross margins have consistently hovered around 80%, highlighting the efficiency of its core business. However, its net profit margins have climbed to 16.3% recently, reflecting the success of its scalable business model. This profitability inflection is a strong indicator that Palantir's focus on AI and data analytics is translating into more consistent bottom-line growth, a trend that appears to be accelerating.
Image Source: Zacks Investment Research
Vertiv (VRT - Free Report) : AI and Cloud Infrastructure
Vertiv (VRT - Free Report) is another company well-positioned to benefit from the surging demand in AI and cloud computing industries. Specializing in providing critical infrastructure for data centers, Vertiv is at the forefront of supporting the backbone of AI-driven businesses. With Oracle’s Larry Ellison discussing plans to build 1,000-2,000 new data centers, companies like Vertiv stand to benefit immensely from the expected rise in global data storage and processing needs.
Vertiv's growth story is promising, with an estimated earnings per share (EPS) growth of 29.6% annually over the next three to five years. While the company’s earnings revision trend has flattened recently, it had been trending upward for more than a year, indicating strong analyst confidence prior to the recent pause. Many analysts believe the market may still be underestimating the full impact the AI boom will have on Vertiv’s growth. As AI continues to permeate industries, the demand for data centers and related infrastructure is expected to soar, creating further room for growth and future earnings revisions.
Trading at 37.6x forward earnings, Vertiv’s valuation, while elevated, reflects the company’s robust positioning in the data center market and its long-term growth prospects. Although this level puts VRT’s valuation well above the broad market and its five-year median of 22.4x, it is still below the industry average.
Image Source: Zacks Investment Research
AppLovin (APP - Free Report) : Digitial Advertising Rising Star
AppLovin (APP - Free Report) has carved out a significant niche within the rapidly growing digital advertising space, with a particular focus on mobile ads. As mobile becomes the dominant platform for digital engagement, AppLovin is poised to capitalize on this shift. By 2028, 70% of total ad spending is expected to be generated through mobile platforms, positioning AppLovin as a leader in this space.
The global online advertising market was valued at $236.9 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 15.7% through 2030. AppLovin’s sales are expected to mirror this growth, with forecasts of a 35.2% increase in revenue this year and 13.5% next year. In terms of profitability, AppLovin is projected to grow its EPS by 20% annually over the next three to five years, making it a compelling play for investors seeking exposure to the burgeoning digital advertising market.
What sets AppLovin apart is its strong earnings revision trend, with estimates having been raised by as much as 23.1% over the last two months. This indicates that analysts are increasingly bullish on the company’s near-term prospects. Similar to Vertiv, AppLovin trades at a premium valuation of 37.3x forward earnings, reflecting the market’s confidence in its ability to capitalize on the growth of mobile advertising.
Image Source: Zacks Investment Research
Should Investors Buy APP, PLTR and VRT Shares?
All three of these companies—Palantir, Vertiv, and AppLovin—offer compelling growth stories, each aligned with key technological trends that are reshaping industries. While they come with elevated valuations, their growth potential, strong industry tailwinds, and upward earnings revisions make them attractive investments for those willing to bet on the future of AI, data infrastructure, and digital advertising.