Palantir Technologies Stock Earns Technical Rating Upgrade Amid Growth Selloff

May 17, 2021 at 18:34

Palantir Technologies (PLTR) saw a welcome improvement to its Relative Strength (RS) Rating on Monday, with an increase from 65 to 74. Like most growth names, the computer software stock has been consolidating for months as the stock market has been favoring value stocks. Palantir Technologies stock is definitely one to watch when tech stocks rebound so look for a bottom reversal.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

IBD's unique rating tracks price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.

Decades of market research shows that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating as they launch their largest climbs. See if Palantir Technologies can continue to show renewed price strength and clear that threshold.

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Since hitting a 52-week high of 45 on Jan. 27, Palantir has been trading under its 50-day moving average. While the stock is not near an ideal buying range right now, see if it goes on to form and break out from a proper base. Check out "Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks."

Sees Substantial Growth

Palantir's earnings grew 500% last quarter, up from 0% in the prior report. Revenue also increased, from 40% to 49%.

The company holds the No. 48 rank among its peers in the Computer Software-Enterprise industry group. Digital Turbine (APPS) and Aspen Technology (AZPN) are also among the group's highest-rated stocks. For more industry news, check out " AI News: Artifcial Intelligence Trends And Leading Stocks."

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