Sign InMixed Signals and Potential Rebound: Palantir Technologies Inc. (PLTR) Stock Analysis
Summary
Palantir Technologies Inc. (PLTR) closed at $14.67 on August 22, 2023, with a 1.17% gain for the day, and while technical indicators suggest a potential rebound in the near future, mixed analyst opinions and an oversold RSI indicate a need for caution and a 'Hold' recommendation for now.
Technical Analysis
Palantir Technologies Inc. (PLTR) closed at $14.67 on August 22, 2023. The stock saw a change of $0.17, registering a 1.17% gain for the day. The day's range was between $14.63 and $15.13, below its 52-week high of $20.24, but notably above its 52-week low of $5.92.
The average trading volume for PLTR is 81.88 million shares while the day's volume was below average with 51.82 million shares. This could indicate a decline in current demand for the stock.
Monitoring the technical indicators, PLTR is flashing several signals. The Relative Strength Indicator (RSI14) is at 17, which is dangerously close to the oversold zone. This might signify a potential rebound in the near future.
In addition, Palantir's Moving Average Convergence Divergence (MACD) is at -0.23 for the 3-month time frame, indicating a downward momentum. However, PLTR's 50-day moving average is $16.19, significantly above its last close, potentially suggesting a negative trend. The 200-day moving average stands at $10.33, which is below the last close, indicating a longer-term upward movement.
Its Average True Range (ATR), a tool used to measure volatility, stands at 6.71, referring to the large price swings. The support and resistance levels are $14.54 and $14.69, respectively.
Fundamental Analysis
Palantir has a market cap of $31.57 billion. It is crucial to note that the company's EPS stands at -$0.02, displaying a negative earnings scenario which potentially contributes to the stock’s lower price levels. However, the firm shows a PE of -733.5, which suggests investors are willing to pay a high price for the company's future earnings growth.
The discounted cash flow (DCF) is valued at $15.93, suggesting that the stock is currently undervalued. Target prices set by analysts range from a low of $4.50 to a high of $25.00, with a median target of $9.50, while the actual consensus is formed at $11.00.
Despite these mixed signals, analysts' opinions lean towards a 'Buy' recommendation (7 buy, 1 hold, 2 sell).
Recent News and Forecast
Public opinions and sentiments regarding PLTR have been mixed recently. One analyst report suggested that US stocks are heading toward a correction, potentially impacting PLTR. Another report pitted PLTR against APTV, questioning which of the two offers better value. Other reports, however, recommended holding tech stocks for long-term growth and named PLTR as one of the only 7 AI stocks to consider.
Given all of this, it seems that opinions are divided on the performance of this stock for the upcoming trading day, August 23, 2023, and the next week.
Final Evaluation
In consideration of the above analysis, given the oversold status on the RSI, pessimism seems to be overextended and the potential for a rebound looks possible. Despite the downward trend indicated by the MACD, the divide in public and analyst sentiments, the longer-term upward moving average, and the DCF valuation, suggest some potential promise in the future for this stock.
Thus, a recommendation for Palantir Technologies Inc. (PLTR) stock at this point would lean towards a 'Hold', with potential upside if analyst's positive predictions come to pass and the technical indicators reverse from their current trends. It is always advisable to consider potential risks and the larger market trends when incorporating stock analysis into trading decisions.
