Software company Palantir, PLTR, is a stock I believe is setting up well for a strong move in the coming months. After a monster 2020 where it ran up from $10 to $40, Palantir has been basing throughout 2021, mostly between the $20 and $30 range. Let’s dive in and take a look at the fundamentals and technicals of Palantir Technologies.
Palantir has three main software projects to help organizations integrate data to make more effective decisions: Gotham, Metropolis, and Foundry. Gotham is currently being used by United States Intelligence organizations for counter-terrorism. Metroplis offers financial services for hedge funds and banks. Foundry is used by large corporations like Morgan Stanely and Fiat Chrysler.
Over its’ last two quarters, PLTR has produced triple-digit earnings growth. In addition, it has a consistent history of sales growth and is estimated to have a strong 2022. I also like the fact that management currently owns 10% of its’ shares, indicating they have skin in the game and are bullish on Palantir’s future. What’s even more impressive is that fund ownership has more than doubled in 2021! Clearly, something is going on with Palantir that makes fund managers want to own it.
When looking at the chart, there are a few things I really like. First, the large base built over the course of 2021 is constructive. These type of bases lay the foundation for future gains. I also really like the heavy volume hammer shakeout in May below $20 and the tight action this summer. I opened a position in PLTR today with a stop loss below recent support.
To learn more about swing trading and trading in general, visit my course page.
Full Disclosure: I currently own Palantir (PLTR).
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.