Palantir Continues To Prove The Analysts Wrong


black android smartphone turned on screenImage Source: UnsplashSummary

  • Palantir Technologies shows strong technical buy signals, with a 28.63% gain since 11/5 and a 229.67% gain in the last year.
  • The company’s software platforms, including Gotham, Foundry, Apollo, and AIP, drive significant demand from both commercial and government sectors.
  • Despite mixed analyst ratings, Palantir’s revenue and earnings are projected to grow substantially, with a market cap of $147 billion and strong U.S. sales.
  • Investors should note the stock’s volatility and consider diversification and stop-loss strategies, as advised by Barchart’s Chart of the Day.
  • The Chart of the Day belongs to builder of software technology for the intelligence community Palantir (PLTR). I found the stock by using Barchart’s powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/5 the stock gained 28.63%.
    PLTR Price vs Dail Moving Averages
    Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The company provides Palantir Gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. It also offers Palantir Foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place. In addition, it provides Palantir Apollo, a software that delivers software and updates across the business, as well as enables customers to deploy their software virtually in any environment; and Palantir Artificial Intelligence Platform (AIP) that provides unified access to open-source, self-hosted, and commercial large language models (LLM) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations’ actions and processes into tools for humans and LLM-driven agents. The company was incorporated in 2003 and is headquartered in Denver, Colorado. Barchart’s Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
    Barchart Technical Indicators:

  • 100% technical buy signals
  • 188.51 Weighted Alpha
  • 229.67% gain in the last year
  • Trend Seeker buy signal
  • 2.70 – 60 month Beta
  • Above its 20, 50 and 100 day moving averages
  • 16 new highs and up 55.01% in the last month
  • Relative Strength Index 83.22%
  • Technical support level at $62.45
  • Recently traded at $65.77 with 50 day moving average of $43.18
  • Fundamental Factors:

  • Market Cap $147 billion
  • Revenue expected to grow 25.47% this year and another 24.18% next year
  • Earnings are estimated to increase 51.45% this year and an additional 24.74% next year
  • Analysts and Investor Sentiment — I don’t buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it’s hard to make money swimming against the tide:

  • Wall Street analyst gave 2 strong buy, 6 hold and 7 sell opinions on the stock
  • Analysts’ price targets are between $11 and $57
  • Value Line rates the stock it’s above rating of 2 and has a price target of $56 or 15% below today’s close but comments: “Palantir Technologies continues to benefit from extraordinary demand. The company reported a stunning 83% increase in U.S. commercial customers, to 295, in the recent second quarter, driven by continued adoption of the Artificial Intelligence Platform (AIP).”
  • CFRAs MarketScope rates the stock a hold with a price target of $54 yet comments: “Sales benefited from significant demand strength in the U.S. in both its government and commercial segments. U.S. commercial sales (+54.3% Y/Y) outpaced International Commercial (+2.2% Y/Y), while U.S. government revenue increased 40% Y/Y .”
  • MorningStar gives the stock its lowest rating of 1 with a Fair Value of $24 or 213% over valued but comments: “Palantir remains one of the clearest beneficiaries of an uptick in demand for artificial intelligence-related solutions. The firm’s AI platform, AIP, continued to fire on all cylinders in the third quarter, with demand from both commercial and government clients. “
  • 279,130 investors monitor the stock on Seeking Alpha
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