Chart of the Day: Palantir Just Might Be Unstoppable. For Now.
PLTR is selling at 261-times earnings. Should you be worried?
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We often talk about the wall of worry for the stock market, yet some individual stocks need to climb their own wall. Take Palantir PLTR, a stock that has had a meteoric rise over the past 18 months.
From the low teens, the stock has soared higher on ever-increasing volume, better chart statistics, positive earnings and news surrounding the name. But when the perceived bad news hits, there becomes a problem: Is the stock too expensive to hold through a selling wave. Investors have to ask themselves if holding a company selling at 261-times earnings is appropriate....
As it relates to the chart, it is full-steam ahead. The recent pullback was shallow and allowed dip buyers to attack and add shares. Though momentum is down, as you can see by the Stochastics in pane 4. We still see good action here.
The candles are flipping between blue and teal, those are bullish qualities on the GoNoGo composite of indicators. Though the parabolic SAR (stop and reverse) in the top pane went bearish, we are not yet concerned about it. The stock is right near all-time highs and looks to make a run at $150.
We like Palantir in TheStreet Pro portfolio and rate it a two, or stockpile on pullbacks.
The Pro Portfolio is long Palantir
