14 Best Consulting Stocks to Buy Now

04. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 45

Palantir Technologies Inc. (NYSE:PLTR) develops software platforms for the intelligence community, aiding in counterterrorism efforts in the US, UK, and internationally. Citi analysts are optimistic about Palantir Technologies Inc. (NYSE:PLTR) ahead of its upcoming earnings report, predicting a slight beat of expectations. Despite a cautious outlook for the software sector, Citi highlights Palantir as a standout performer. They noted that while Q2 might be choppy, they see solid commercial momentum despite some government uncertainty. Citi analysts expect Palantir Technologies Inc. (NYSE:PLTR) to slightly exceed topline metrics in Q2, with potential profitability upside. Following a visit to Palantir’s headquarters, they are increasingly positive about the company’s commercial and AI platform (AIP) momentum. Though monetization and revenue traction are early, the company appears promising. Government contracts remain depressed, but management is confident about long-term acceleration, though cautious near-term. Recent government data showed a steep decline, over 60%, due to a Department of Defense contract that included catch-up payments last Q2. Citi has slightly raised its long-term growth rates for Palantir Technologies Inc. (NYSE:PLTR) commercial and government sectors, setting a target price of $28 per share. In the latest quarter, announced on May 6, Palantir Technologies reported an EPS of $0.08, which was in line with expectations. Additionally, Palantir Technologies Inc. (NYSE:PLTR) revenue was $634.34 million, exceeding expectations by $16.73 million.

In the first quarter of 2024, the number of hedge funds with positions in Palantir Technologies Inc. (NYSE:PLTR) rose to 45 from 44, according to Insider Monkey’s database, which tracks 920 hedge funds. The combined value of these holdings is approximately $2.62 billion. During this period, Ken Griffin’s Citadel Investment Group became the largest shareholder among these hedge funds.

Carillon Scout Mid Cap Fund stated the following regarding Palantir Technologies Inc. (NYSE:PLTR) in its first quarter 2024 investor letter:

“The top contributor to return for the quarter was Palantir Technologies Inc. (NYSE:PLTR). Sentiment improved on Palantir after it reported stronger than expected commercial customer revenue and free cash flow. U.S. commercial growth was especially encouraging, as U.S. commercial revenue was up by a large percentage year over year for the fourth quarter and U.S. commercial customer count grew nearly as much. We expect Palantir to become one of the premier artificial intelligence (AI) software providers, built on its Foundry and AIP platforms.”