The 2 Best-Performing Stocks of the Past Year Are Still Screaming Buys, According to Certain Wall Street Analysts

Core Insights - The Russell 1000 index includes 95% of U.S. equities by market value, with AppLovin and Palantir Technologies being the top performers, returning 283% and 267% respectively over the 12-month period ending March 31, 2025 [1] AppLovin - AppLovin develops adtech software for marketing and monetizing applications, primarily focused on video games, and is expanding into e-commerce advertising [2] - The company utilizes Axon, a recommendation engine that enhances campaign targeting through machine learning algorithms, benefiting from a network effect that improves predictive capabilities over time [3] - In Q4, AppLovin reported a 44% revenue increase to $1.4 billion and a 253$0.49 per diluted share, with its e-commerce advertising product achieving a billion-dollar run rate shortly after launch [4] - CEO Adam Foroughi noted the potential for growth as over 10 million businesses worldwide could profitably use AppLovin's platform, indicating an expanding addressable market [5] - Wall Street anticipates a 45% earnings growth for AppLovin in 2025, with a current valuation of 53 times earnings, resulting in a PEG ratio of 1.2, making shares attractive despite short-seller attacks [6] - Loop Capital Markets set a target price of $650 per share for AppLovin, suggesting a 173$238 [10] Palantir Technologies - Palantir develops software platforms for data integration and analysis for commercial organizations and government agencies, with a unique ontology-based software architecture [7] - The software allows users to query data with analytical applications and machine learning models, enhancing decision-making and creating real value through AI applications [8] - The introduction of the Artificial Intelligence Platform (AIP) in 2023 positions Palantir to capitalize on AI demand, enhancing its core analytics platforms [9] - In Q4, Palantir reported a 36% revenue increase to $828 million and a 75$0.14 per diluted share, marking the sixth consecutive quarter of revenue acceleration [11] - Wall Street expects a 36% increase in Palantir's adjusted earnings in 2025, but the current valuation of 229 times adjusted earnings appears expensive, resulting in a PEG ratio of 6.4 [12] - Analyst Dan Ives believes Palantir could achieve a trillion-dollar market value within two to three years, indicating a potential 355% upside from its current market value of $220 billion [13] - Wedbush Securities set a target price of$120 per share for Palantir, implying a 28% upside from its current price of $94 [10]