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 stock meets several key criteria of the system, combining strong earnings growth, high relative strength, and solid fundamentals. Below, we examine why PLTR fits the CANSLIM approach.

Key CANSLIM Criteria Met by PLTR

• C – Current Earnings & Sales Growth:

  • Quarterly EPS growth (Q2Q): 62.5% (well above the 20% minimum).
  • Quarterly revenue growth (Q2Q): 39.3% (exceeding the 25% threshold).

• A – Annual Earnings Growth:

  • 3-year EPS CAGR: 43.1%, significantly higher than the 25% benchmark.
  • Return on Equity (ROE): 10.5%, indicating efficient capital use.

• N – New Highs & Innovation:

  • PLTR operates in AI and big data analytics, sectors with strong growth potential.
  • The stock is trading near its 52-week high, a positive signal for momentum investors.

• L – Market Leadership:

  • Relative Strength (CRS): 98.96, meaning it outperforms nearly 99% of stocks.

• I – Institutional Sponsorship:

  • Institutional ownership: 55.7%, below the 85% threshold, suggesting room for further institutional interest.

• M – Market Direction:

  • Both short-term and long-term trends for the S&P 500 are positive, supporting a favorable environment for growth stocks.

Technical & Fundamental Highlights

• Technical Analysis: PLTR scores a perfect 10/10 on ChartMill’s technical rating, with strong trends across multiple timeframes. The stock is consolidating near highs, presenting a potential breakout opportunity. Full technical report here.
• Fundamental Analysis: PLTR has excellent growth metrics but trades at a high valuation (P/E of 309.78). Its profitability and liquidity are strong, with no debt. Full fundamental report here.

For more CANSLIM-compliant stocks, check our predefined CANSLIM screener.

Disclaimer

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