Planet Labs Stock Rallies 98% in 6 Months: Is it Still a Buy?

Planet Labs PBC PL, a prominent provider of daily, worldwide satellite imagery and geospatial services, has dazzled investors with an outstanding 97.9% return over the last six months.Over the same time frame, Planet Labs has outperformed the broader Zacks Computer and Technology sector and the Zacks  Internet – Software industry’s return of 3.7% and 14.2%, respectively. It has also outperformed its industry peers, including Compass COMP and Innovid CTV. Shares of COMP and CTV have gained 40.8% and 75.1%, respectively, for the past six-month period.This exceptional surge highlights growing investor confidence in the company's business plan and market potential. Important factors like the rise in global customer growth, including new clients brought in by the Sinergise acquisition, prudent cost control and net expansion of current client contracts led to this outperformance.Planet Labs PBC Price and Consensus Planet Labs PBC price-consensus-chart | Planet Labs PBC QuoteStrategic Collaborations Bolster Pl’s ProspectsPlanet Labs' dedication to advancing satellite technology is demonstrated by its collaboration with NVIDIA NVDA on the Pelican-2 satellite, which will have edge computing capabilities with AI. Real-time analysis and quicker customer delivery of actionable insights could be made possible by this direct integration of AI into the satellite infrastructure, creating new use cases and revenue streams.Planet Labs revealed that it had inked a multi-year, seven-figure contract with Laconic. For the next three years, Laconic will receive AI-powered forest carbon insights from all over the world using Forest Carbon products derived from Planet Labs' satellite data.PL declared an extension of their agreement with the National Police of Colombia. The Colombian National Police tracks and attempts to stop illegal crop growth and harvest in almost real-time by using Planet's satellite data.Notably, The Taylor Geospatial Institute (“TGI”) has extended its contract with Planet Labs to provide data through 2026. TGI can use a number of industry-leading products from Planet under the multi-year contract, such as its flagship PlanetScope data, robust data archive, high-resolution SkySat data, and various Planetary Variable analytic products.Technology Advancements Aid PL’s GrowthPlanet Labs continues investing in technological advancements to maintain its competitive edge. With its vast image archives and emphasis on AI-powered solutions, Planet Labs is well-positioned to take advantage of a huge market opportunity.PL unveiled its AI-powered Forest Carbon Monitoring product, which measures forests worldwide at a 3-meter resolution every three months. In order to support voluntary carbon markets, regulatory compliance, and deforestation mitigation, this new product provides partners and customers with an unprecedented dataset.PL reported that 36 SuperDoves (Flock 4BE) and Tanager-1, its first hyperspectral satellite, were successfully launched into orbit as part of SpaceX's Transporter-11 Rideshare mission. The goal of the philanthropically funded Tanager-1 project is to create and launch satellites that can identify and monitor methane and CO2 super-emitters with the granularity required to facilitate direct mitigation measures.Tanager-1 integrates the state-of-the-art imaging spectrometer design created at NASA's Jet Propulsion Laboratory with PL's innovative smallsat bus and agile aerospace technologies.Thus, these launches are expected to contribute to revenue starting in fiscal 2026 and could open new revenue streams across all business segments, including defense and intelligence, civil government and commercial applications.Analysts are optimistic about the company’s near-term prospects. The Zacks Consensus Estimate for fiscal 2026 revenues indicate a year-over-year increase of 12.2%, while the consensus mark for the bottom line signifies a contraction in loss per share from 15 cents to 7 cents. PL has surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 28.2%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Zacks RankPlanet Labs carries a Zacks Rank #2 (Buy), implying that existing investors should keep on holding the stock while new buyers should accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. 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