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

PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) stands out as a compelling candidate for investors following Louis Navellier’s growth strategy. The company meets multiple criteria outlined in The Little Book That Makes You Rich, demonstrating strong earnings momentum, accelerating revenue growth, and improving profitability. Below, we examine why PLTR aligns with these principles.

Key Strengths Supporting Growth

• Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 4.75% over the past three months. PLTR has also exceeded earnings expectations in three of the last four quarters, with an average surprise of 10.13%.
• Revenue Growth: Sales increased 33.45% year-over-year, while quarterly revenue surged 39.34%, indicating strong demand for its software platforms.
• Expanding Profitability: Operating margins improved by 54.48% over the past year, reflecting better cost management and pricing power.
• Strong Cash Flow: Free cash flow grew by an impressive 280.96%, providing flexibility for reinvestment and innovation.
• Earnings Momentum: Quarterly EPS growth accelerated to 62.5%, up from 60% in the prior-year period.
• High Return on Equity (ROE): At 10.52%, PLTR’s ROE outperforms 79% of its software industry peers.

Fundamental Snapshot

PLTR’s fundamental report highlights a mixed but promising profile:

• Growth: Exceptional past and projected growth, with EPS up 64.29% YoY and revenue climbing 33.45%.
• Profitability: Solid margins (80.01% gross margin) but elevated valuation metrics (P/E of 284.22).
• Financial Health: Strong liquidity (current ratio of 6.49) and no debt, though share dilution remains a concern.

For investors seeking similar high-growth opportunities, our Louis Navellier Growth screener offers updated results daily.

Disclaimer

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