Palantir Technologies has been one of the top performing stocks in 2024 as a developer of critical software that assists with complex organizational tasks including counter terrorism operations for government agencies.
Soaring over +300% year to date, it may be a worthy topic of whether PLTR should have a spot in investors' portfolios as we edge closer to the new year. This may certainly be on investors' minds as Palantir stock is now sitting on +600% gains since going public in 2020.
The strongest catalyst for PLTR has been investor interest in artificial intelligence (AI) with Palantir offering a range of advanced AI solutions that are designed to help organizations unlock the value of their data.
As a beneficiary of the AI boom, Palantir Foundry is the company's flagship platform that integrates and operationalizes data by using AI and machine learning to provide actionable insights for complex workflows. Additionally, the Palantir Artificial Intelligence Platform (AIP) is designed to improve productivity and reduce costs while Palantir's Edge AI platform enables the training, management, and development of AI models by supporting autonomous decision making for real time data.
Palantir's Strategic Partnerships
Notably, Palantir has strategic partnerships with the U.S. government which has been a further driver regarding high investor sentiment. More appealing is that Palantir recently extended its contract to assist with the U.S. Army Data Platform (ADP) in December.
ADP integrates, analyzes, and visualizes data that supports the army's readiness, logistics, recruiting, and financial management. Providing its AI-enabled capabilities, Palantir inked the deal for $400.7 million over four years but could reap up to $620 million.
Palantir's Strong Financial Performance
Also driving momentum in PLTR has been Palantir's strong financial performance with the company now reaching or exceeding the Zacks EPS Consensus for eight consecutive quarters.
Based on Zacks estimates, Palantir's total sales are now expected to increase 26% in fiscal 2024 and are forecasted to climb another 24% in FY25 to $3.5 billion. Already profitable, Palantir's annual earnings are expected to soar 52% this year to $0.38 per share versus EPS of $0.25 in 2023. Plus, FY25 EPS is projected to expand another 24% to $0.47.
What suggests Palantir stock could still have more upside is that FY24 and FY25 EPS estimates are up 5% and 9% in the last 60 days respectively.
Palantir stock currently sports a Zacks Rank #2 (Buy) based on the trend of positive earnings estimate revisions. Furthermore, as arguably the hottest IPO in recent years, PLTR has remained a viable option for portfolio growth.
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Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
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