PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) Shows High Growth Momentum and Technical Strength

A methodical process for finding high-potential growth stocks joins strict technical study with fundamental momentum filters. The system used here brings together Mark Minervini's Trend Template, which finds stocks in strong uptrends, with a High Growth Momentum (HGM) rating that points out companies showing quickening financial results. This two-part method aims to locate securities that are both technically sound and have the fundamental business force that may support their progress. PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) appears as a candidate that matches this joined system, justifying a more detailed look.

Technical Strength and the Trend Template

The center of Minervini's strategy is the Trend Template, a group of technical rules made to confirm a stock is in a steady, long-term uptrend. This is important because stocks in a clear Stage 2 advance are those most able to generate large gains. A look at PLTR's chart and main numbers shows a solid match with these ideas.

• Price Above Key Moving Averages: The stock is trading notably higher than its rising 150-day ($139.81) and 200-day ($126.67) simple moving averages (SMAs). This meets the template's need for a positive long-term trend.
• Moving Average Alignment: The shorter 50-day SMA ($172.15) is located higher than both the 150-day and 200-day SMAs, a positive setup that shows quickening momentum across different time periods.
• Proximity to Highs: With a present price of $178.15, PLTR is trading within 6.2% of its 52-week high of $190.00, satisfying the rule of being within 25% of its high. This shows strong momentum and a tendency to lead its industry group.
• Strong Relative Strength: A ChartMill Relative Strength (CRS) rating of 98.07 shows that PLTR has done better than 98% of all stocks in the market over the last year. Minervini points out that market leaders show high relative strength, as it indicates institutional interest and better performance.

Fundamentals Driving High Growth Momentum

While the Trend Template shows how a stock is moving, the High Growth Momentum rating helps clarify why. For a stock to maintain a strong uptrend, it usually needs solid and quickening fundamental results. PLTR's financial numbers show a company in a solid growth period.

• Strong Earnings Growth: The company has shown notable profit growth. Its EPS growth on a trailing twelve-month (TTM) basis is 65.63%. Even more notable is the quarterly momentum, with the last quarter showing 77.78% year-over-year EPS growth. This type of quickening is a main part of the strategy, as "big earnings attract big attention" from institutional investors.
• Steady Revenue Quickening: Top-line growth is also notable. Revenue growth (TTM) is at 38.79%, and the most recent quarter had a 48.01% year-over-year increase. This quickening in sales is a sign of a company getting more market share and growing successfully.
• Growing Profitability: An important signal of a high-quality growth company is bettering efficiency. PLTR's profit margin in the last quarter was 32.55%, a large growth from 24.22% the previous quarter and 9.55% two quarters ago. This pattern of growing margins indicates pricing strength and operational scale, which are basic drivers of high performance.
• Positive Analyst Revisions: The view stays positive, with analysts changing their next-year EPS estimates upward by 10.79% over the last three months. Such positive revisions often come before continued good price performance as expectations are set higher.

Technical Analysis Overview

The provided technical report for PLTR gives the stock a high rating of 8 out of 10, reflecting its sound technical condition. The report states that PLTR is a top performer compared to the wider market and its industry. While the short-term trend is now neutral, the long-term trend stays positive. The study finds a clear support area around $175.71 and a resistance area just above the present price, starting at $186.97. A move above this resistance level could signal the next step up in the trend, matching the strategy's focus on buying at key points.

Discovering Similar Opportunities

For investors looking to use this joined method of the Minervini Trend Template and High Growth Momentum filtering, new possible candidates can be found in a methodical way. A preset screen is ready to help you find other stocks that currently meet these strict technical and fundamental rules.

Click here to view the live "High Growth Momentum + Trend Template" screen for updated results.

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Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. The analysis is based on publicly available data and a specific methodology. All investments involve risk, and you should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses that may result from acting on information contained in this article.