How PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) Fits the CAN SLIM Investing Strategy for High-Growth Stocks

The CAN SLIM investing strategy, created by William O’Neil, merges fundamental and technical analysis to spot high-growth stocks with solid momentum. The approach looks for firms showing faster earnings and sales growth, leading positions in their sectors, and support from institutions, all while highlighting the need to consider the broader market trend. By filtering for stocks that fit these conditions, investors target substantial gains during favorable market periods.

One stock that recently appeared in a CAN SLIM-based scan is PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR). Here, we review how PLTR matches the strategy’s main elements.

How PLTR Fits CAN SLIM Guidelines

C – Current Quarterly Earnings & Sales Growth

The CAN SLIM method favors firms with strong quarterly earnings and revenue increases. PLTR posted:

• Quarterly EPS growth (Q2Q) of 62.5%, significantly higher than the 20-30% minimum suggested by O’Neil.
• Revenue growth of 39.3% year-over-year, also above the strategy’s 25% target.

This improvement in earnings and sales points to effective business performance, a vital consideration for CAN SLIM investors looking for firms with improving financials.

A – Annual Earnings Growth

Consistent earnings growth over several years is another key part of the strategy. PLTR’s 3-year EPS compound annual growth rate (CAGR) of 43.1% exceeds the 25% minimum. Its Return on Equity (ROE) of 10.5% also reflects efficient use of capital, supporting its profit outlook.

N – New Products, Management, or Highs

PLTR works in fast-growing areas like artificial intelligence and big data analytics, with platforms such as Gotham, Foundry, and AIP gaining traction in government and commercial markets. From a technical perspective, the stock is near its 52-week high, a positive sign under CAN SLIM, which prefers stocks breaking out of consolidation phases.

S – Supply & Demand

The strategy stresses low debt and good liquidity. PLTR has no outstanding debt, an uncommon and advantageous feature that lowers financial risk. Its average daily trading volume of ~73.6 million shares also ensures sufficient liquidity, a factor that attracts institutional buyers.

L – Market Leadership

Strong relative performance is a trait of market leaders. PLTR’s ChartMill Relative Strength (CRS) score of 99.23 indicates it beats almost all other stocks in the market—a clear sign of momentum and institutional interest.

I – Institutional Sponsorship

While CAN SLIM leans toward rising institutional ownership, PLTR’s current institutional ownership of 55.7% suggests potential for more accumulation, which could drive further price increases.

M – Market Direction

The overall market’s short-term trend is upward, matching CAN SLIM’s guideline of investing mainly in bullish environments. PLTR’s strong technical rating (10/10) and rising moving averages also support a favorable entry point aligned with market momentum.

Technical & Fundamental Overview

• Technical Analysis (TA) Report: PLTR scores a perfect 10/10, with both short- and long-term trends positive. The stock is consolidating near highs, offering a possible breakout chance. View the full TA report here.
• Fundamental Analysis (FA) Report: PLTR earns a 6/10, with high scores for growth and financial stability but a premium valuation. Its earnings path warrants closer review for growth-focused investors. See the detailed FA report.

Next Steps for Investors

For those using the CAN SLIM approach, PLTR stands out with its rapid earnings growth, sector dominance, and technical strength. Investors should watch for a clear breakout above resistance with strong volume, a core principle of the strategy.

To find other stocks meeting CAN SLIM standards, view the full screener results here.

Disclaimer: This analysis is not investment advice. Always perform your own research and apply risk management techniques before making trading choices.