Palantir stock forecast for November after guiding FY2021 revenue above estimates

On Tuesday, Palantir Technologies Inc. (NYSE:PLTR) shares plummeted nearly 9% after announcing its most recent quarterly results. The company reported its fiscal third-quarter revenue and earnings before markets opened, beating analyst expectations on revenue. It also raised its FY2021 revenue growth guidance to 40% from 30% previously, surpassing Street estimates.

Palantir posted FQ3 non-GAAP earnings per share of $0.04 in line with expectations. On the other hand, its GAAP EPS of -$0.05 outperformed the estimate of -$0.08, while revenue for the quarter spiked by 35.5% from the same quarter a year ago to $392 million, $5.54 million ahead of estimates.

Palantir now expects a full-year 2021 revenue of about $1.527 billion, surpassing the consensus Street forecast of $1.51 billion.

Should you bet on PLTR’s growth?

From an investment perspective, Palantir shares trade at a steep forward P/E ratio of about 116.47 following Tuesday’s post-earnings pullback. Therefore, value investors could still opt for alternatives in the market.

However, with analysts forecasting an EPS growth of about 32.28% next year and an annual growth rate of nearly 50% for the next five years, growth investors could find the stock as an exciting option for their portfolios.

Featured Broker

Looking to invest?

Invest and trade CFD stocks, ETFs, digital assets & commodities in minutes with our highest-rated broker.

77% of retail CFD accounts lose money.

Ad

Despite Tuesday’s plunge, Palantir shares are still up more than 66% over the last 12 months, thus leaving little room for short-term gains.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Technically, Palantir seems to have found support from the 100-day moving average following Tuesday’s pullback.

Therefore, investors could target potential rebound profits at about $27.05, or higher at $29.97. On the other hand, if the decline continued towards the trendline support, the stock could find support at about $21.63, or lower at $18.70.

Could it be time to buy?

In summary, although Palantir shares trade at a steep P/E ratio, its growth prospects could gain the attention of long-term investors. 

In addition, the recent pullback seems to have found solid support, thus creating an opportunity for a rebound.

Ad

Copy expert traders easily with eToro. Invest in stocks like Tesla & Apple. Instantly trade ETFs like FTSE 100 & S&P 500. Sign-up in minutes.

10/10

77% of retail CFD accounts lose money.

Get demo account