Will Palantir Stock Keep Surging After Expanding Government Contracts?
From Nasdaq: 2025-05-30 18:53:00
- Data analytics and AI software provider Palantir (PLTR) saw its stock surge +9% as it expands government contracts, with PLTR skyrocketing over +1,300% in the last three years.
- Palantir’s stock is near its 52-week high after news of expanding government contracts, including organizing personal data for federal agencies and collaborating with Fannie Mae and the U.S. Army.
- Zacks forecasts Palantir’s total sales to increase 37% this year, with annual earnings expected to rise 44% in FY25 and 24% in FY26.
- Despite being profitable, Palantir’s stock trades at a high forward earnings multiple of 208.3X, with a P/S premium of 92.6X compared to industry averages.
- With a "B" Momentum score, Palantir has short-term catalysts for stock growth, but its stretched valuation may give investors pause.
- Palantir currently has an overall "C" VGM grade, a Zacks Rank #3 (Hold), and potential for further stock price and EPS target increases.
- Zacks experts have handpicked 5 stocks set to double in 2024, with previous recommendations soaring as high as +673.0%.
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