Palantir Technologies (NYSE:PLTR) delivers shareholders decent 46% return over 1 year, surging 4.2% in the last week alone

If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Palantir Technologies Inc. (NYSE:PLTR) share price is up 46% in the last 1 year, clearly besting the market decline of around 0.1% (not including dividends). That's a solid performance by our standards! Palantir Technologies hasn't been listed for long, so it's still not clear if it is a long term winner.

The past week has proven to be lucrative for Palantir Technologies investors, so let's see if fundamentals drove the company's one-year performance.

See our latest analysis for Palantir Technologies

Because Palantir Technologies made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Palantir Technologies saw its revenue grow by 21%. We respect that sort of growth, no doubt. Buyers pushed the share price 46% in response, which isn't unreasonable. If revenue stays on trend, there may be plenty more share price gains to come. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. If you are thinking of buying or selling Palantir Technologies stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Palantir Technologies shareholders should be happy with the total gain of 46% over the last twelve months. And the share price momentum remains respectable, with a gain of 51% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Palantir Technologies better, we need to consider many other factors. Take risks, for example - Palantir Technologies has 1 warning sign we think you should be aware of.

But note: Palantir Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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