Bullish Investors Pushing Palantir Into the S&P 500

PLTR’s data integration and software solutions are pushing its stock into the S&P 500. That not only validates the company, but also means institutional shareholders are likely to buy soon.

Palantir is profitable, with a strong balance sheet ($4 billion in cash and no debt). It seems to be in a stable position too, with more than half its revenue from government sources and its commercial (non-government) revenue growing. PLTR’s second-quarter commercial segment revenue was up 33% to $307 million. Its government sales are up too, rising 24% to $278 million in the U.S. alone.

It’s no wonder PLTR shares are up 102% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves Palantir Shares

Institutional volumes reveal plenty. In the last year, PLTR has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in PLTR shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Palantir.

Palantir Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PLTR has strong sales and earnings growth:

• 3-year sales growth rate (+27.2%)
• 3-year earnings growth rate (+45.8%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +18.9%.

Now it makes sense why the stock has been powering to new heights. PLTR has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Palantir has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when PLTR was a top pick…driving shares way up:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Palantir Price Prediction

The PLTR rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in PLTR at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.