Is PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) following the Minervini trend for explosive growth?

Our stock screener has spotted PALANTIR TECHNOLOGIES INC-A (NASDAQ:PLTR) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Does PLTR pass the Minervini Trend Template check?

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for PLTR:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Looking into the high growth metrics of PLTR

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. PLTR scores a 7 out of 10:

Earnings Momentum

• PLTR has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 75.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• PLTR shows accelerating EPS growth: when comparing the current Q2Q growth of 75.0% to the previous quarter Q2Q growth of 42.86%, we see the growth rate improving.
• The 1-year EPS growth of PLTR (64.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• Over the past 3 years, PLTR has demonstrated 43.07% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• PLTR has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 36.03%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• The sales growth of PLTR is accelerating: the current Q2Q growth of 36.03% is above the previous quarter Q2Q growth of 29.98%. Sales momentum and acceleration are key for high growth systems.
• Sales growth accelerated for 3 quarters in a row.
• The 1-year revenue growth of PLTR (28.79%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• The average next Quarter EPS Estimate by analysts was adjusted by 21.8%, reflecting the evolving market expectations for the company's EPS growth.
• PLTR has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, PLTR demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• PLTR has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• PLTR has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• A Debt/Equity ratio of 0.0 indicates that PLTR is leveraging debt effectively without excessive risk.

Institutional Confidence & Market Strength

• PLTR exhibits a favorable ownership structure, with an institutional shareholder ownership of 55.02%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• The Relative Strength (RS) of PLTR has consistently been strong, with a current 99.52 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. PLTR currently has a 2 as setup rating:

Although PLTR has an excellent technical rating, it does not present a decent entry opportunity at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation.

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

More like this

It looks like PALANTIR TECHNOLOGIES INC-A meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

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.