Palantir Smokes S&P 500 Peers With 393% Rally But Overheated Technicals Raise Red Flag Ahead Of Earnings

Palantir Technologies Inc PLTR will report its first-quarter earnings on Monday. Wall Street expects 13 cents in EPS and $862.83 million in revenues when the company reports after market hours.

The stock is up 392.98% over the past year and 65.29% year-to-date.

Let’s examine the charts for Palantir stock and how it compares to Wall Street estimates.

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Is Palantir Stock Overheating Ahead Of Q1 Earnings?

Chart created using Benzinga Pro

Palantir stock is putting on a show for the bulls. With its share price of $123.20 comfortably perched above its five-, 20-, and 50-day exponential moving averages, the bullish short-term trend is flashing. Even the 200-day simple moving average trails far behind at $64.91, highlighting just how steep the rally has been. Each of these technical signals points in the same direction: up.

Adding fuel to the fire, Palantir's eight-day simple moving average sits at $116.68, well below the current stock price – a bullish confirmation. The 20-day and 50-day simple moving averages are at $101.04 and $91.94, respectively, further underscoring the strength of momentum. The Moving Average Convergence Divergence (MACD) indicator reads 8.86, another classic sign that buying pressure remains intact.

But before investors jump on the rocket ship, there’s a note of caution: the Relative Strength Index (RSI) has crossed into overbought territory at 71. While overbought doesn't necessarily mean a pullback is imminent, it suggests the stock may be due for a breather.

Palantir's technicals are undeniably bullish, but with momentum running hot, chasing at these levels might require nimble footwork.

Palantir Analysts See 37% Downside

Ratings & Consensus Estimates: The consensus analyst rating on Palantir stock stands at a Neutral currently with a price target of $69.76. Three recent analyst ratings imply a 37.3% downside for Palantir stock, with an average price target of $76.67.

PLTR Price Action: Palantir stock was trading at $123.36 at the time of publication.

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