From Nasdaq: 2024-07-09 13:19:00

Palantir Technologies Inc. (PLTR) hits a 52-week high at $27.99, up 61.3% YTD, post AIP event, outperforming industry and S&P 500. AI stocks like NVIDIA (NVDA) and SoundHound AI (SOUN) also see significant gains. Palantir’s AI solutions secure govt. contracts and commercial revenue share. ROE and ROIC show profitability growth potential.

Zacks data shows PLTR’s 2024 earnings growth at 32%, with sales and earnings expected to rise in 2025. However, current valuation metrics like EV-to-EBITDA and P/E ratios indicate the stock is overpriced. Palantir’s guidance suggests a potential revenue slowdown in Q2 2024, urging caution on investing now. Palantir remains strong fundamentally but may require a market correction for an ideal entry point. The stock carries a Zacks Rank #3 (Hold).

Investors are advised to be wary of Palantir’s overpriced valuation and potential revenue slowdown in Q2 2024, wait for a better entry point amidst market corrections. While Palantir shows strength in AI-led cybersecurity, its current high valuations may not justify immediate investment. Zacks ranks the stock as a #3 (Hold), suggesting caution.

Additionally, Zacks Investment Research highlights a little-known chemical company with explosive upside potential, possibly rivaling recent high-growth stocks like Boston Beer Company and NVIDIA. The recommended stock could double in value and presents a compelling investment opportunity in a high-demand sector. Download Zacks’ report for more insights and recommendations.



Read more at Nasdaq: Palantir Hits 52-Week High: Can the AI Buzz Drive PLTR Higher?