NYSE:PLTR: a strong growth stock preparing for the next leg up?.

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.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:PLTR was assigned a score of 8 for growth:

• PLTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 113.33%, which is quite impressive.
• The Revenue has grown by 21.22% in the past year. This is a very strong growth!
• The Revenue has been growing by 30.17% on average over the past years. This is a very strong growth!
• PLTR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.35% yearly.
• Based on estimates for the next years, PLTR will show a very strong growth in Revenue. The Revenue will grow by 21.47% on average per year.

Assessing Health for NYSE:PLTR

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:PLTR, the assigned 8 reflects its health status:

• An Altman-Z score of 50.69 indicates that PLTR is not in any danger for bankruptcy at the moment.
• The Altman-Z score of PLTR (50.69) is better than 99.29% 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.
• A Current Ratio of 5.92 indicates that PLTR has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 5.92, PLTR belongs to the best of the industry, outperforming 87.86% of the companies in the same industry.
• PLTR has a Quick Ratio of 5.92. This indicates that PLTR is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 5.92, PLTR belongs to the top of the industry, outperforming 87.86% of the companies in the same industry.

Exploring NYSE:PLTR's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:PLTR, the assigned 6 is noteworthy for profitability:

• The Return On Assets of PLTR (7.79%) is better than 83.57% of its industry peers.
• Looking at the Return On Equity, with a value of 9.99%, PLTR belongs to the top of the industry, outperforming 81.07% of the companies in the same industry.
• PLTR has a Return On Invested Capital of 5.26%. This is in the better half of the industry: PLTR outperforms 76.79% of its industry peers.
• The Profit Margin of PLTR (16.32%) is better than 83.57% of its industry peers.
• The Operating Margin of PLTR (11.78%) is better than 82.14% of its industry peers.
• PLTR has a Gross Margin of 81.39%. This is amongst the best in the industry. PLTR outperforms 84.29% of its industry peers.
• In the last couple of years the Gross Margin of PLTR has grown nicely.

How do we evaluate the setup for NYSE:PLTR?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:PLTR is 7:

PLTR has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 42.96, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of PLTR

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.