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Why Palantir Technologies Inc. (PLTR) Outpaced the Stock Market Today

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In the latest trading session, Palantir Technologies Inc. (PLTR - Free Report) closed at $16.33, marking a +1.49% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.25%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 1.3%.

Heading into today, shares of the company had 0% over the past month, lagging the Business Services sector's gain of 0.44% and the S&P 500's gain of 1.58% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on February 5, 2024. On that day, Palantir Technologies Inc. is projected to report earnings of $0.08 per share, which would represent year-over-year growth of 100%. Simultaneously, our latest consensus estimate expects the revenue to be $603.48 million, showing a 18.65% escalation compared to the year-ago quarter.

Investors should also pay attention to any latest changes in analyst estimates for Palantir Technologies Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Palantir Technologies Inc. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Palantir Technologies Inc. is holding a Forward P/E ratio of 54.77. This denotes a premium relative to the industry's average Forward P/E of 24.14.

We can also see that PLTR currently has a PEG ratio of 0.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PLTR's industry had an average PEG ratio of 1.44 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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