PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) – A Strong Contender for CANSLIM Investors

PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) stands out as a potential candidate for investors following the CANSLIM strategy. The company’s strong earnings growth, high relative strength, and improving fundamentals align well with the criteria outlined by William O’Neil’s system. Below, we examine why PLTR fits the CANSLIM approach.

Key CANSLIM Criteria Met by PLTR

• Current Earnings Growth (C): PLTR reported a 62.5% year-over-year EPS growth in its most recent quarter, well above the CANSLIM minimum threshold of 20%. Revenue growth was also strong at 39.3%, indicating accelerating business momentum.
• Annual Earnings Growth (A): The company’s 3-year EPS growth rate of 43.1% demonstrates sustained profitability expansion. Its Return on Equity (ROE) of 10.5% further supports efficient capital usage.
• New Highs & Leadership (N & L): PLTR’s stock has shown exceptional price strength, with a relative strength of 99.35, meaning it outperforms nearly all other stocks in the market. It is also trading near its 52-week high, a positive signal for momentum investors.
• Supply & Demand (S): The company has no debt (Debt/Equity of 0), reducing financial risk. Institutional ownership stands at 55%, leaving room for further institutional accumulation.
• Market Direction (M): The S&P 500 is in a positive trend, supporting the case for growth-oriented stocks like PLTR.

Technical & Fundamental Highlights

• Technical Strength: PLTR’s chart shows a clear uptrend, with both short-term and long-term trends positive. The stock has gained 469% over the past year, significantly outpacing the broader market.
• Fundamental Health: While PLTR’s valuation appears expensive with a high P/E ratio, its growth metrics justify investor optimism. The company maintains strong liquidity, with a current ratio of 6.49, and has shown consistent revenue and earnings expansion.

For a deeper look, review the full technical analysis and fundamental report.

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Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.