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Palantir Technologies Inc. (PLTR) Dips More Than Broader Markets: What You Should Know

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Palantir Technologies Inc. (PLTR - Free Report) closed at $8.06 in the latest trading session, marking a -1.1% move from the prior day. This move lagged the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.07%.

Prior to today's trading, shares of the company had gained 4.62% over the past month. This has outpaced the Business Services sector's loss of 10.95% and the S&P 500's loss of 8.4% in that time.

Palantir Technologies Inc. will be looking to display strength as it nears its next earnings release. On that day, Palantir Technologies Inc. is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $474.58 million, up 21.02% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.06 per share and revenue of $1.9 billion. These totals would mark changes of -53.85% and +23.3%, respectively, from last year.

Any recent changes to analyst estimates for Palantir Technologies Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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).

In terms of valuation, Palantir Technologies Inc. is currently trading at a Forward P/E ratio of 143.82. This represents a premium compared to its industry's average Forward P/E of 20.99.

It is also worth noting that PLTR currently has a PEG ratio of 4.65. 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 was holding an average PEG ratio of 1.81 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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