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Why Palantir Technologies Inc. (PLTR) is a Top Momentum Stock for the Long-Term
ZACKSยท 2025-08-22 14:50
Core Insights - Zacks Premium provides various tools to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [4] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score helps investors capitalize on price trends by evaluating short-term price changes and earnings estimate revisions [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection based on value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, outperforming the S&P 500 [8] - There are typically over 800 top-rated stocks available, making it essential to utilize Style Scores to narrow down choices [9] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [11] Company Spotlight: Palantir Technologies Inc. - Palantir Technologies, founded in 2003, specializes in software platforms for the intelligence community, focusing on counterterrorism [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Momentum Style Score of A [12][13] - Palantir's shares have increased by 0.9% over the past four weeks, with upward revisions in earnings estimates for fiscal 2025, raising the consensus estimate by $0.07 to $0.65 per share [13]