Palantir (PLTR)
Palantir stock is down 18% in the past 6 months and looks poised for a breakout according to analyst estimates because the average analyst rating is a Buy with a +20% one year forecast. This would put PLTR at $177.52 for April 2027. However, we believe everyone is wrong about PLTR stock because on a growth adjusted basis it’s 1.4 PEG ratio leaves a lot to be desired as it introduces a lot of risk we think a lot of investors could go without right now.
| PLTR | |
| Share Price | $147.93 |
| Earnings Per Share | $0.62 |
| EPS (Analyst Forward 1yr) | $1.70 |
| Price to Earnings | 238.6 |
| EPS Growth (Projected 1 yr) | 174.2% |
| PEG | 1.4 |
Palantir currently has 1 year EPS growth projections of around 174% which is great, but their high valuation at a 238 PE introduces a lot of risk if they can’t meet these ambitious growth forecasts. That said, Palantir has beat all 4 of their latest earnings calls which does improve confidence that they may be able to meet these EPS estimates. They are currently facing some controversy right now but they are still proving to be able to secure contracts, something they will need to continue to do if they are going to keep their valuation high.
Because of the high valuation and 1.4 PEG, we have rated Palantir a high risk, high reward stock and currently have it rated a Sell with a -2% 1 year growth forecast. Typically WSX estimates are not too far off of analyst averages, but the delta between our -2% forecast and the average analyst at +20% should really go on to highlight the volatility and risk that this stock is facing right now. That said PLTR is a currently a good pick for investors with a high tolerance for risk who are looking to get into the defence sector and are seeking more excitement than established players like LMT and RTX can provide.
Topics: PLTR stock decline, why is Palantir down, Palantir stock price prediction, PLTR stock analysis
