Palantir Technologies Inc. (NASDAQ:PLTR) Emerges as a CANSLIM Growth Candidate

For investors looking for a systematic way to find high-growth market leaders, the CANSLIM method, created by William O’Neil, remains a key strategy. It mixes strict fundamental study with important technical signs to find stocks with solid earnings momentum, better relative strength, and institutional support, all while the general market trend is positive. This organized system tries to find stocks beginning a major price rise.

A recent scan using main CANSLIM filters has identified Palantir Technologies Inc. (NASDAQ:PLTR) as a possible candidate. The company, which provides central operating system software for data analysis and artificial intelligence, seems to match several parts of the strategy.

Looking at the Fundamental "C-A" Criteria

The "C" and "A" in CANSLIM center on current and yearly earnings power, which are vital for finding real growth instead of temporary momentum. Palantir shows very strong growth in these areas:

• Current Quarterly Earnings & Sales (C): The company reported a year-over-year EPS growth of 110% and sales growth of 62.8% for its latest quarter, well above the strategy's common minimum levels of 20-25%. This speed increase is a main signal the system looks for.
• Annual Earnings Increases (A): Palantir's three-year EPS compound annual growth rate (CAGR) is 43.1%, showing continued, high-level growth. Also, its Return on Equity (ROE) of 16.6% points to efficient use of shareholder capital, meeting the profitability and efficiency check.

These numbers, shown in the full fundamental analysis report, lead to a high growth rating. The report mentions Palantir's very good profitability and health scores, though it notes a high valuation that is common for high-growth companies in the software industry.

Reviewing the "N-S-L-I" Factors

The later parts of the acronym mix fundamental and technical parts to measure market acceptance and stock behavior.

• New Products, New Highs (N): Palantir is central to the changing fields of AI and big data analytics with its platforms like Gotham, Foundry, and the Palantir Artificial Intelligence Platform (AIP). While not at a new 52-week high right now, its solid long-term price trend shows market acceptance of this forward-looking position.
• Supply, Demand, and Leadership (S & L): The company has a Debt/Equity ratio of 0.0, showing a solid balance sheet with no debt—a positive point for the "Supply" rule. More significantly, its Relative Strength (CRS) of 95.7 means it has done better than over 95% of the market. This leading status is a key part of the CANSLIM idea, which states that the best fundamentals are confirmed by better price performance.
• Institutional Sponsorship (I): Institutional ownership is listed at 60.1%, which is under the 85% level often used in scans. This indicates there is still potential for more institutional buying, which can give continued demand and price support.

Technical Condition and Market Direction

The "M" in CANSLIM stresses the need for a positive general market trend. At present, both the short and long-term trends for the S&P 500 are good, creating a supportive setting for growth stocks to advance.

Palantir's own technical state is strong, receiving a high rating of 9 out of 10 in its technical analysis report. Important points include:

• Both its short-term and long-term trends are positive.
• It is doing better than 93% of its software industry competitors.
• The stock is trading in the higher part of its 52-week range.

The report does note that recent price movement may not show a perfect, low-risk chance for a new purchase at this specific time, indicating investors look for possible stabilization.

A Candidate for More CANSLIM Study

Based on the measured filters of the CANSLIM scan—very strong quarterly growth, solid annual EPS increases, high relative strength, and acceptable institutional ownership—Palantir Technologies shows a profile that justifies more review by growth-focused investors. It represents the kind of company the strategy tries to locate: a leader in a forward-looking field, showing speeding financial results that are being recognized by the market.

Interested in seeing other stocks that currently meet similar CANSLIM-based filters? You can check and adjust the scanning settings yourself using this pre-set stock scanner.

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Disclaimer: This article is for information only and does not make up investment advice, a recommendation, or an offer or request to buy or sell any securities. The study shown is based on data and a specific scanning method; it is not a replacement for your own independent research and review. Investing in stocks includes risk, including the possible loss of principal.