NYSE:PLTR qualifies as a high growth stock and is consolidating.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether PALANTIR TECHNOLOGIES INC-A (NYSE:PLTR) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but PALANTIR TECHNOLOGIES INC-A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Exploring NYSE:PLTR's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:PLTR has earned a 8 for growth:

• PLTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 211.11%, which is quite impressive.
• PLTR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.61%.
• Measured over the past years, PLTR shows a very strong growth in Revenue. The Revenue has been growing by 30.17% on average per year.
• The Earnings Per Share is expected to grow by 23.35% on average over the next years. This is a very strong growth
• PLTR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.47% yearly.

Deciphering NYSE:PLTR's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:PLTR has earned a 8 out of 10:

• An Altman-Z score of 35.12 indicates that PLTR is not in any danger for bankruptcy at the moment.
• PLTR has a better Altman-Z score (35.12) than 98.94% of its industry peers.
• PLTR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• PLTR has a Current Ratio of 5.91. This indicates that PLTR is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 5.91, PLTR belongs to the best of the industry, outperforming 88.34% of the companies in the same industry.
• PLTR has a Quick Ratio of 5.91. This indicates that PLTR is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 5.91, PLTR belongs to the best of the industry, outperforming 88.34% of the companies in the same industry.

Profitability Examination for NYSE:PLTR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:PLTR was assigned a score of 5 for profitability:

• With an excellent Return On Assets value of 6.21%, PLTR belongs to the best of the industry, outperforming 82.33% of the companies in the same industry.
• PLTR's Return On Equity of 7.91% is fine compared to the rest of the industry. PLTR outperforms 77.74% of its industry peers.
• PLTR has a better Return On Invested Capital (3.83%) than 73.85% of its industry peers.
• Looking at the Profit Margin, with a value of 12.79%, PLTR belongs to the top of the industry, outperforming 82.33% of the companies in the same industry.
• The Operating Margin of PLTR (8.43%) is better than 78.45% of its industry peers.
• PLTR has a Gross Margin of 81.16%. This is amongst the best in the industry. PLTR outperforms 85.16% of its industry peers.
• PLTR's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NYSE:PLTR?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:PLTR currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, PLTR also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 28.58. Right above this resistance zone may be a good entry point.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of PLTR for a complete fundamental analysis.

Our latest full technical report of PLTR contains the most current technical analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.