PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) – A High-Growth Stock with Strong Technical Setup

PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) stands out as a high-growth momentum candidate with a solid technical setup, making it an interesting prospect for investors seeking both earnings momentum and favorable chart patterns. The company’s strong fundamentals, combined with a high technical rating and consolidation pattern, suggest potential for further upside.

Fundamental Strength: High Growth Momentum

PLTR earns a High Growth Momentum Rating of 7, reflecting strong earnings and revenue trends. Key highlights include:

• EPS Growth (TTM): +64.3% year-over-year
• Revenue Growth (TTM): +33.5% year-over-year
• Free Cash Flow Growth: +281% over the past year
• Profit Margin Expansion: Recent quarter profit margin at 24.2%, up from 9.5% a year ago
• Consistent Earnings Surprises: Beat EPS estimates in 3 of the last 4 quarters, with an average surprise of 10.1%

Sales growth has accelerated in recent quarters, with the latest quarter posting a 39.3% year-over-year increase. Analysts have also raised next-year EPS and revenue estimates by 3.8% and 3.2%, respectively, over the past three months.

Technical Strength and Setup

PLTR’s technical profile is equally compelling, with a Technical Rating of 10 and a Setup Rating of 7. Key observations from the technical report:

• Strong Uptrend: Both short-term and long-term trends are positive.
• Relative Strength: Outperforms 99% of stocks over the past year and 97% of peers in the software industry.
• Consolidation Pattern: Trading in a range between $118.93 and $135.28, with reduced volatility suggesting a potential breakout.
• Support Levels: Multiple support zones, including a key area around $127.15-$128.56.
• Resistance Breakout Opportunity: A move above $132.82 could signal further upside.

The stock is currently trading near its 52-week high, indicating strong momentum. Large players have shown increased interest, reinforcing the bullish setup.

Conclusion

PLTR presents a compelling case for high-growth momentum investors, supported by accelerating earnings, expanding margins, and a technically sound chart pattern. While the stock has already seen significant gains, the combination of strong fundamentals and a favorable setup suggests further potential.

For more high-growth momentum stocks with solid technical setups, check our High Growth Momentum Breakout Setups Screen.

Disclaimer

This is not investment advice. The observations are based on data available at the time of writing. Always conduct your own research before making investment decisions.