From Hold To Buy: Why I'm Turning Bullish On Palantir

2026-03-17 15:42:27 ET

I rated Palantir Technologies Inc. ( PLTR ) a Hold when I last wrote about the stock on May 25, 2025. When I wrote my last article , the stock had a FY 2025 forward P/E to growth ("PEG") ratio of 5.19, and a trailing 12-month ("TTM") price-to-FCF of 238.49, well above its three-year median of 86.19, valuations where I was starting to get uncomfortable recommending a Hold and almost recommended a Sell. However, my thesis in that article was that it sometimes pays to hold an "overvalued" stock because quality companies with a significant first mover advantage and a strong moat often trade at a premium, and that proved true. I also stated:

Palantir may grow in its valuation over the next several years if it can maintain its first-mover advantage, and it may be worthwhile for existing long-term investors to hold the stock. Still, investors holding Palantir sitting on [major] gains for a year or more should consider scaling out or trimming the position, especially if the stock rises any higher.

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