Knowing facts before you bet on it

Palantir Technologies Inc. (Untrtr) is one of the stocks that have recently been viewed by Zacks.com visitors. So it could be a good idea to check some of the factors that could influence the short -term performance of the share.

The shares of this company have changed +34.5% compared to the Zacks S&P 500 Composite +13.7% last month. The Zack's Internet software industry, which includes Palantir Technologies, has increased 21.8% during this period. Now the main question is: where could the inventory be directed at short notice?

Although media reports or rumors about a significant change in the business prospects of a company generally lead to the fact that its shares lead to trend and an immediate change in price, there are always certain basic factors that ultimately advance the purchase and hate decision.

Here at Zacks we prioritize the evaluation of the change in the projection of the future income of a company above all. This is because we believe that the current value of his future profit current determines the current value for its shares.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

For the current quarter, Palantir Technologies are expected to make a profit of $ 0.14 per share, which indicates a change of +55.6% compared to the previous year. The Zacks Consensus estimate has changed in the last 30 days +1.1%.

The consensus rate estimate of $ 0.58 for the current financial year shows a change of +41.5%compared to the previous year. This estimate has changed +14% in the last 30 days.

For the next financial year, the consensus result of $ 0.73 shows a change of +25.5% compared to that of Palantir Technologies a year ago. The estimate of +4.3%has changed last month.

Our proprietary stock assessment tool, The Zacks Rank, offers a strong externally tested track record and offers a more conclusive picture of the price direction of a share at short notice, as it effectively uses the power of profits. Due to the size of the recent change in the consensus estimate and three other factors in connection with earnings estimates, Palantir Technologies with Zacks ranked number 2 (purchase) is rated.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for BlTR _12MonthepScharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

For Palantir Technologies, consensus sales for the current quarter of $ 938.34 million shows a change of +38.4%compared to the previous year. For the current and next financial years, estimates of 3.92 billion US dollars and 5.02 billion US dollars +36.8% or +28.2% make changes.

Palantir Technologies reported a turnover of $ 883.86 million in the last quarter, which corresponds to a change of +39.3%compared to the previous year. EPS of 0.13 US dollars for the same period comparable to USD 0.08 a year ago.

Compared to the Zacks Consensus estimate of $ 862.89 million, the registered income is a surprise of +2.43%. The EPS surprise was 0%.

In the last four quarters, the Palantir technologies exceeded the consensus -epseps three times. The company exceeded consensus sales every time.

No investment decision can be efficient without taking into account the evaluation of a share. Whether the current price of a share rightly reflects the internal value of the underlying business and the growth prospects of the company is an essential determinant for future price -performance.

During the comparison of the current values of the evaluation advantages of a company, such as price-to-profit (P/E), Price-to-Sales (P/S) and Price-to-Cash-Flow (P/CF), with its own historical values, to determine whether its shares are rather evaluated, overvalued or undervalued, the relative position is comparable to prices for the relative position.

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

Palantir Technologies is evaluated on this front to F, which points out that it is with a bonus with his colleagues. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and much other information about Zacks.com could help determine whether it is worth paying attention to the market for the market for Palantir technologies or not. However, his Zack's rank #2 suggests that he can exceed the wider market at short notice.

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Palantir Technologies Inc. (BlTR): Report on free stock analysis

This article was originally published in Zack's Investment Research (Zacks.com).

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