Palantir Technologies Inc. (PLTR) was recently a top Zacks.com search. You may wish to investigate some of the important aspects that could affect the stock's performance soon. This company's shares returned +46.5% last month, compared to the Zacks S&P 500 composite's +4.8%. Palantir Technologies Inc. is in the Zacks Technology Services industry, which has gained 20.4%. Future stock direction is the crucial question.
Despite media announcements or speculations regarding a company's business prospects 'trending' and causing an immediate price movement, fundamental facts always drive buy-and-hold decisions.
Zacks prioritizes a company's future earnings estimate change over everything else. We feel its stock's fair value is based on the present value of its future earnings.
We examine how sell-side analysts tracking the stock are updating their profit projections to reflect business changes. A company's stock fair value rises with profit projections. A higher fair value than the market price attracts investors, raising the stock's price. Therefore, empirical research demonstrates a substantial association between earnings estimate revisions and near-term stock price changes.
This quarter, Palantir Technologies Inc. is predicted to earn $0.08 per share, up 60% from the year-ago quarter. Over the past 30 days, the Zacks Consensus Estimate has increased 16.1%. The consensus profits projection of $0.33 for the current fiscal year is up 32% from last year. Over 30 days, this estimate has increased 9%.
The consensus earnings forecast for Palantir Technologies Inc. for the next fiscal year is $0.40, up 20.5% from last year. In the past month, the estimate has increased 10.7%.
Our unique stock grading technique, the Zacks Rank, uses earnings estimate revisions to better predict a stock's near-term price performance and has an exceptional externally verified track record. Palantir Technologies Inc. has a Zacks Rank #3 (Hold) due to the recent consensus estimate adjustment and three additional earnings estimate factors.
Even though earnings growth is the best sign of financial health, nothing happens if revenues don't rise. Earnings growth is nearly impossible without long-term revenue growth. Therefore, knowing a company's revenue growth potential is vital.
Palantir Technologies Inc.'s consensus sales forecast for the quarter is $614.88 million, up 17.1% year-over-year. Current and next fiscal year predictions are $2.68 billion and $3.25 billion, representing 20.6% and 21.3% increases.
Palantir Technologies Inc. reported $608.35 million in revenues last quarter, up 19.6% year-over-year. EPS was $0.08 versus $0.04 a year earlier. Revenues were +0.81% higher than the Zacks Consensus Estimate of $603.48 million. EPS surprise: 0%. Palantir Technologies Inc. exceeded consensus EPS projections twice in the last four quarters. The company exceeded consensus revenue expectations three times.
No investing decision is efficient without stock valuation. To anticipate a stock's future price, you must analyze if its present price reflects the business's fundamental value and growth potential.
Comparing the current value of a company's valuation multiples, such as its P/E, P/S, and P/CF, to its historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, while comparing it to its peers tells how reasonable its stock price is.
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