In the latest close session, Palantir Technologies Inc. (PLTR) was down 2.31% at $170.30. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. Meanwhile, the Dow lost 1.18%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Shares of the company have depreciated by 0.51% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.12%, and the S&P 500's loss of 0.36%.
Investors will be eagerly watching for the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.41, showcasing a 95.24% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.17 billion, up 83.95% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.6 per share and revenue of $8.14 billion. These totals would mark changes of +113.33% and +81.77%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Palantir Technologies Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Palantir Technologies Inc. boasts a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Palantir Technologies Inc. is currently being traded at a Forward P/E ratio of 109.06. Its industry sports an average Forward P/E of 20.46, so one might conclude that Palantir Technologies Inc. is trading at a premium comparatively.
Also, we should mention that PLTR has a PEG ratio of 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Palantir Technologies Inc. (PLTR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).