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.

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.

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.