Why PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) qualifies as a high growth stock.

A possible breakout setup was detected on PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:PLTR.

Insights from Technical Analysis

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall PLTR gets a technical rating of 8 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that PLTR is one of the better performing stocks in the market, outperforming 98% of all stocks. On top of that, PLTR also shows a nice and consistent pattern of rising prices.
• PLTR is one of the better performing stocks in the Software industry, it outperforms 97% of 281 stocks in the same industry.
• PLTR is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• In the last month PLTR has a been trading in the 74.57 - 99.01 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of PLTR

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for PLTR is 7:

PLTR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 85.98, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for PLTR in the last couple of days, which is a good sign.

Looking into the high growth metrics of PLTR

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. PLTR has achieved a 7 out of 10:

Explosive Earnings Growth

• The recent financial report of PLTR demonstrates a 75.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• PLTR shows accelerating EPS growth: when comparing the current Q2Q growth of 75.0% to the previous quarter Q2Q growth of 42.86%, we see the growth rate improving.
• PLTR has experienced 64.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• Over the past 3 years, PLTR has demonstrated 43.07% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The q2q revenue growth of 36.03% of PLTR highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• The sales growth of PLTR is accelerating: the current Q2Q growth of 36.03% is above the previous quarter Q2Q growth of 29.98%. Sales momentum and acceleration are key for high growth systems.
• Sales growth accelerated for 3 quarters in a row.
• With impressive 1-year revenue growth of 28.79%, PLTR showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• The average next Quarter EPS Estimate for PLTR has experienced a 20.68% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• With a track record of beating EPS estimates in the last 4 quarters, PLTR showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Financial Strength & Profitability

• The operating margin of PLTR has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• The profit margin of PLTR has seen steady growth over the past year, signaling improved profitability.
• With positive growth in its free cash flow (FCF) over the past year, PLTR showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• With a Debt/Equity ratio of 0.0, PLTR demonstrates prudent financial management.

Institutional Confidence & Market Strength

• With institutional shareholders at 55.02%, PLTR demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• The Relative Strength (RS) of PLTR has been consistently solid, with a current 98.86 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.