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

PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) stands out as a compelling pick for investors following Louis Navellier’s growth-focused strategy. The company’s strong fundamentals align well with the criteria outlined in The Little Book That Makes You Rich, particularly in earnings growth, sales expansion, and cash flow strength.

Key Strengths

• Earnings Growth & Surprises: PLTR reported a 64.3% year-over-year EPS growth, with three positive earnings surprises in the last four quarters, averaging a 10.1% beat. Analysts have also raised next-quarter EPS estimates by 4.7% over the past three months.
• Revenue Expansion: Sales grew 33.5% year-over-year, with quarterly revenue up 39.3%, reflecting strong demand for its data analytics platforms.
• Operating Margin Improvement: Operating margins expanded by 54.5% in the past year, indicating better cost efficiency alongside revenue growth.
• Cash Flow Strength: Free cash flow surged 281% year-over-year, reinforcing the company’s ability to fund operations and growth internally.
• Return on Equity: PLTR’s ROE of 10.5% is solid, outperforming 79% of its software industry peers.

Valuation & Risks

While PLTR’s growth metrics are impressive, its valuation is steep, with a P/E ratio of 277.6. This premium pricing reflects high expectations for future earnings growth (projected at 35.5% annually). Investors should weigh growth potential against valuation risks.

For a deeper dive, review the full fundamental analysis of PLTR.

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Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.