Palantir Technologies Inc. Shows Potential for Long-Term Growth Despite Near-Term Bearish Sentiment

StockInvest.us, 10 months ago

Palantir Fundamental Analysis

Palantir Technologies Inc. (Ticker: PLTR) last closed at $15.33 on September 15, 2023, marking a decrease of $0.50 (-3.16%). The company has a market capitalization of $32.99 billion and an average trading volume of 64.52 million shares, reporting a volume of 55.49 million shares on the last close day.

The company's PE ratio stands at -766.5, and it recorded an EPS of -$0.02. Palantir's present valuations seem to be deeply negative, indicating poor past performance.

However, based on recent news reports, Palantir is positioning itself favourably in the AI/ML technology domain, indicating robust future growth potential. A deal with Babcock International is cited, that suggests expansion of their data services. Additionally, the company also appears to have taken the White House AI safety pledge.

Given Palantir's substantial shares outstanding of 2.15 billion, the recent business maneuvers communicate an optimistic note to the stakeholders of the company. A recent news everyone should take into consideration is that Palantir's remarkable growth of nearly 150% on a year-to-date basis is largely attributed to strong earnings and elevated expectations.

Technical Analysis

The stock exhibited a 50-day moving average of $16.17 and a 200-day moving average of $10.98. These figures suggest that the stock is currently trading below its 50-day moving average, indicating a potential bearish trend, but it is significantly above its 200-day moving average, suggesting overall bullish momentum.

Palantir The relative strength index (RSI) stands at 58, which is close to the overbought threshold (70), which may signal a probable price correction or slowdown in the bullish trend. The recent MACD of -0.279943 also suggests a slightly bearish sentiment. With its average true range (ATR) standing at 5.45, PLTR has demonstrated high price volatility.

Furthermore, the price finds its support at $15.25 and resistance at $15.79. Upon examining the discounted cash flow (DCF), it is estimated to be $16.59, which is higher than the current price, indicating the stock may be undervalued.

Analyst Recommendations and Targets

Analysts have a mixed consensus on PLTR, with 7 analysts recommending 'Buy', 3 advising 'Sell', and 1 suggesting to 'Hold'. The median target price is $9.50, which is significantly lower compared to the last close, while the consensus target was cited higher at $11.00.

Final Evaluation

Given the overall analysis of Palantir Technologies Inc., there seems to be near-term bearish sentiment, but the stock displays long-term potential because of the company's positioning in the AI/ML technology sector and its future business prospects.

Accordingly, the stock can be categorised as 'Hold'. Some factors may suggest a bearish short-term outlook, but the long-term potential due to fundamental factors indicates the possibility of subsequent recovery and growth.

For the next trading day on September 18, 2023, one might expect the stock to open closer to the lower end of the price spectrum near its support level ($15.25) given the recent bearish trend. However, for the upcoming week, it will be crucial to see if the price can rebound to maintain its long-term bullish trend. Please conduct your own research before making any investment decisions.

Check full Palantir forecast and analysis here.