Palantir Technologies (NASDAQ:PLTR) Shows Strong Momentum with High Growth and Technical Scores

For investors looking to combine solid earnings momentum with positive technical patterns, a multi-layered screening method can be especially effective. One useful technique involves selecting stocks that show solid fundamental growth traits, as shown by a High Growth Momentum (HGM) score, while also showing technical soundness and a forming price structure, shown by high Technical (TA) and Setup scores. This method tries to find companies not just seeing quickening business results but also trading in a way that hints at a possible extension of their upward move, giving a more defined point of entry for investors focused on momentum.

PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) appears as a leading case from this kind of screen, earning an 8 out of 10 on the HGM score, a full 10 on the TA score, and a 7 on the Setup score. This mix points to a company performing very well, with fast financial growth supporting a strong price trend that could be starting a new stage.

Fundamental Growth Momentum

The center of the high-growth momentum method is finding companies with quickening earnings and sales strength, and Palantir's recent financial numbers offer a strong case. The HGM score brings together several important growth and momentum measures, and PLTR's results are led by outstanding performance in all areas.

• Fast Earnings Growth: The company's earnings per share (EPS) growth on a trailing twelve-month (TTM) basis is about 83%. More notably, the quarterly momentum is clear, with the latest quarter showing year-over-year EPS growth of 110%, after 78% growth in the quarter before.
• Solid and Quickening Sales: Revenue growth is also strong, with TTM sales up more than 47%. Quarterly sales growth has been getting faster, reaching almost 63% in the last reported quarter, up from 48% and 39% in the earlier quarters. This sequence of acceleration is a main idea of momentum investing, hinting at rising business speed.
• Margin Improvement and Cash Flow Jump: Beyond sales growth, Palantir is showing notable operating efficiency. The profit margin in the last quarter improved to 40.3%, up in order from 32.6%, 24.2%, and 9.5% over the three previous quarters. Also, free cash flow per share has increased greatly, growing 278% over the past year.
• Positive Surprises and Revisions: The company has exceeded EPS estimates in three of the last four quarters, with an average surprise of almost 15%, and has exceeded revenue estimates in all four. Analysts have also been raising their estimates, with the average EPS estimate for the next year increasing by about 12.7% over the last three months. These items, surprises and upward revisions, are important parts of the HGM score, verifying that the company's performance is surpassing expectations.

Technical Soundness and Setup Condition

While fundamental momentum gives the "why," technical study helps find the "when." According to the detailed technical report, Palantir's chart shows notable soundness. A full TA score of 10 is uncommon and points to very good technical condition across different time periods.

• Strong Trend Agreement: Both the long-term and short-term trends are scored as positive, with the stock trading well above its important moving averages (20, 50, 100, and 200-day SMAs), all of which are increasing. This consistent agreement is a sign of a solid, continuing upward move.
• Market Outperformance: The stock's relative strength is very good, doing better than 95% of the whole market over the past year and 94% of its software industry group. This verifies the price movement is backed by real demand and institutional attention.
• Formation Within a Trend: The Setup score of 7, while not at a very high level, shows the stock has been trading in a noticeable range over the past month (about $163 to $199). It is now trading near the top of this range. For momentum investors, this represents a possible forming period within a strong upward move, a time of pause that often comes before a new upward step. The technical report notes several set support areas below the present price, which can help set risk levels.

A Merging Investment Idea

The merging of Palantir's fundamental and technical views forms a clear investment idea for the growth momentum method. The HGM score confirms that the company's excellent earnings acceleration, margin improvement, and positive estimate revisions are not just past events but show current momentum. This fundamental driver is what finally supports continued price gains. At the same time, the technical scores verify that this fundamental soundness is being acknowledged in the market, leading to a strong, leading price trend that is now waiting in a formation. This pause, identified by the Setup score, offers a possible chance for investors who follow such methods to prepare for a potential extension move.

This exact mix of high growth momentum and technical formation can be methodically looked for using specific screening tools. Investors searching for other possible choices that meet these strict needs of solid earnings momentum, technical soundness, and forming price patterns can review the set High Growth Momentum Breakout Setups Screen.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. The analysis is based on data provided and reflects conditions at a specific point in time. Investing involves risk, including the potential loss of principal. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment decisions.