The Zacks Analyst Blog Palantir Technologies, NVIDIA and SoundHound AI

For Immediate ReleasesChicago, IL – November 1, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Palantir Technologies Inc. PLTR, NVIDIA NVDA and SoundHound AI SOUN. Here are highlights from Friday’s Analyst Blog:Should Palantir Be Part of Your Portfolio?Palantir Technologies Inc. will report its third-quarter 2024 results on Nov 4, after the bell.The Zacks Consensus Estimate for earnings in the to-be-reported stands at 9 cents, indicating 28.6% growth from the year-ago reported quarter. The consensus estimate for total revenues stands at $705.1 million, indicating 26.3% year-over-year growth. There has been no change in analyst estimates or revisions lately.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters and matched thrice, with an earnings surprise of 4.2%, on average.Palantir Technologies Inc. price-eps-surprise | Palantir Technologies Inc. QuotePLTR’s Lesser Chance of Q3 Earnings BeatOur proven model doesn’t conclusively predict an earnings beat for PLTR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.PLTR has an Earnings ESP of -1.22% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.PLTR’s Healthy Business Should Be the Driver in Q3We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by healthy business from existing as well as new customers, strengthening both the Government and Commercial segments.The consensus estimate for Government revenues is pegged at $377.3 million, indicating 22.7% year-over-year growth. The consensus mark for Commercial revenues is pegged at $329.7 million, indicating 31.6% year-over-year growth.PLTR Stock Looking PriceyPalantir shares have surged a whopping 154.4% year to date. This performance has significantly outpaced the 28.1% rise of its industry and the 22.5% increase of the Zacks S&P 500 composite. Interest in this prominent AI-focused stock remains strong as investors seek opportunities to capitalize on the trend. Similarly, other noteworthy AI stocks have experienced significant gains, reflecting the overall positive sentiment in the market. NVIDIA has gained 181.4% and SoundHound AI has rallied 157.1% year to date.At this moment, it is worth noting that at its current valuation, Palantir is looking pricey. Based on training 12-month EV-to-EBITDA, PLTR is currently trading at 387.07X, way above the industry’s 50.29X. If we look at the forward 12-month Price/Earnings ratio, the company’s shares are currently trading at 103.67X forward earnings, well above the industry’s 39.9X.Investment ConsiderationsPalantir’s AI strategy is comprehensive. It combines its proprietary Foundry and Gotham platforms with a solid plan to promote AI adoption across the government and commercial sectors. The company’s expertise in AI-driven information warfare and cybersecurity supports its sustained growth amid evolving global security demands. In the government sector, Palantir is aligning its AI strategy with U.S. defense priorities. In the commercial space, Palantir's AI Platform (AIP) boot camps — providing hands-on experience to over 1,000 companies — have proven instrumental in customer acquisition.In the second quarter of 2024, Palantir’s government revenues grew 23% year over year, driven by strong demand for its AI-powered products. U.S. commercial revenues also surged 55%, fueled by the success of AI platforms. Additionally, the company reported an 88% year-over-year increase in operating income and a 1,200 basis points increase in adjusted operating margin, reflecting improved cost management and higher-margin government contracts.Wait for the Right Time to BuyPalantir's latest guidance suggests a 3% sequential increase in revenues for the third quarter of 2024, indicating a potential slowdown in business growth in the latter half of the year. Nevertheless, the company's agility in AI-led information warfare and cybersecurity continues to position it for sustained growth amidst evolving global security needs.However, given the stock's current high valuation based on EV-to-EBITDA and Price/Earnings ratios, it might be prudent for investors to wait for a potential market correction, especially when PLTR does not seem poised for an earnings beat. Palantir remains fundamentally strong, but a better entry point could emerge if the stock undergoes some price adjustment.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                        https://www.zacks.com                                                    Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis Report SoundHound AI, Inc. (SOUN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks