Palantir Technologies Inc. (PLTR) Underperforms on 2.24% Drop: What to Expect from Earnings and Industry Trends

In the latest trading session, Palantir Technologies Inc. (PLTR) closed at $138.24, marking a -2.24% decline from the previous day. The stock underperformed the S&P 500, which registered a daily loss of 0.84%. The Dow lost 0.7%, and the tech-heavy Nasdaq declined 0.91%. Over the last month, PLTR's shares have increased by 9.18%, outperforming the Computer and Technology sector's 0% loss and the S&P 500's 1.44% gain. The company's upcoming earnings report will be closely watched by investors, with an expected EPS of $0.14, indicating a 55.56% increase compared to the same quarter of the previous year. The consensus revenue estimate for the quarter is $938.34 million, reflecting a 38.37% rise from the equivalent quarter last year. For the full year, PLTR's Zacks Consensus Estimates call for earnings of $0.59 per share and revenue of $3.92 billion, representing year-over-year changes of +43.9% and +36.75%, respectively. Investors should also keep an eye on any recent revisions to analyst forecasts for Palantir Technologies Inc., as these adjustments can indicate changes in business trends and analysts' confidence in the company's performance and profit potential. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations, with stocks at #1 delivering an average annual return of +25% since 1988. Currently, Palantir Technologies Inc. has a Zacks Rank of #3 (Hold). In terms of valuation, PLTR is trading at a Forward P/E ratio of 382.19, which is a premium to its industry average of 45.44. The company also has a PEG ratio of 11.93, indicating that it is trading at a premium to the Internet - Software industry's average PEG ratio of 3.23 as of yesterday's close. The Internet - Software industry, which PLTR belongs to, has a Zacks Industry Rank of 47, placing it in the top 20% of all 250+ industries. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics and more in the coming trading sessions.