What's next for Palantir now that shares are up 111% this year? All signs point down for the S&P 500 champ, say analysts.
Analysts think shares of the digital defense company will fall 5.5% to 141.31 in the next 12 months, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That might not sound too bad until you consider analysts think the average S&P 500 stock will rise 11% in that time.
If analysts are right it would also snap a remarkable rise this year — where Palantir has been the S&P 500's top stock practically all year.
Palantir's Looming Stock Fall
Analysts' souring on Palantir's shares aren't doing it for fundamental reasons. The company's growth prospects still look strong.
Analysts think Palantir's profit will soar 57% this year and 29% next year. The issue is the stock's valuation after this year's meteoric rise. The stock now sports a P-E ratio of 297, or 12.4 times higher than the S&P 500. Even on a forward basis, the stock has a P-E of 249.
Analysts Are Not Just Bearish On Palantir
Analysts aren't just picking on Palantir, though. It's just one of 14 S&P 500 stocks that analysts think will fall 5.5% or more in the next 12 months.
Fellow highflying stock Tesla is seen faring even worse than Palantir. Analysts think shares of the electric-vehicle maker will drop nearly 12% in the next 12 months. And Wall Street is most bearish on newly formed Paramount Skydance. They think the entertainment giant's shares will drop nearly 22% in the next 12 months.
It's important to note that analysts aren't always right. But it's up to Palantir to prove them wrong.
Sour Forecast
Stocks analysts think will drop 5.5% or more in 12 months
| Company | Ticker | YTD change | Implied downside |
|---|---|---|---|
| Palantir Technologies | PLTR | 111.8% | -5.5% |
| D.R. Horton | DHI | 20.6% | -5.7% |
| eBay | EBAY | 51.5% | -6.2% |
| Expeditors International of Washington | EXPD | 9.5% | -6.9% |
| Northern Trust | NTRS | 28.1% | -7.0% |
| Archer-Daniels-Midland | ADM | 24.5% | -7.3% |
| C.H. Robinson Worldwide | CHRW | 23.0% | -7.5% |
| Garmin | GRMN | 12.5% | -7.9% |
| Ford Motor | F | 19.4% | -8.7% |
| Intel | INTC | 20.7% | -8.9% |
| Lennar | LEN | -1.4% | -9.1% |
| Tesla | TSLA | -14.2% | -11.6% |
| Fastenal | FAST | 39.5% | -12.2% |
| Paramount Skydance | PSKY | 46.8% | -21.8% |
