Palantir
Over the past 12 months, shares of Palantir Technologies Inc. (NYSE: PLTR) have jumped by 67%, including an eyewatering ascent of 191% to date this year, with most of that coming in the past three months. It is all about AI and the belief that Palantir is among the leaders in getting useful AI programs out to the world at large, including to its defense customers. The potential is driving the share price higher and might continue doing so for a few quarters yet. But the sooner a payoff comes, the better investors will like it.
Of 17 analysts covering the stock, just three have a Buy or Strong Buy, and seven have Hold ratings. That leaves seven non-believers. At a share price of around $18.70, the stock has far outrun its median price target of $12.00. At the high price target of $25.00, the potential upside is 33.7%.
The consensus second-quarter revenue estimate is $533.57 million, up 1.6% sequentially and by 13.3% year over year. Adjusted EPS are forecast at $0.04, flat sequentially and up 12.8% year over year. For the full 2023 fiscal year, estimates call for EPS of $0.21, up about 255%, on sales of $2.21 billion, up 15.9%.
The stock trades at 87.7 times expected 2023 EPS, 73.5 times estimated 2024 earnings of $0.25 and 56.4 times estimated 2025 earnings of $0.33 per share. Its 52-week range is $5.84 to $20.24 a share, and the company does not pay a dividend. The total shareholder return for the past year is 67.05%.
Paramount Global
Media giant Paramount Global (NASDAQ: PARA) has lost nearly 40% from its share price over the past 12 months, including a year-to-date decrease approaching 11%. The company, formerly known as ViacomCBS, owns CBS, Showtime, Comedy Central and other networks. A weak first-quarter report in early May sent the stock tumbling 30%, and the shares have yet to recover. The company is reportedly near a deal to sell publisher Simon & Schuster to private equity firm KKR for around $1.6 billion. If the only way the company can find to finance its focus on streaming is to sell off its assets, someone will notice fairly quickly and the result could be ugly.
Of 28 brokerages covering the company, just seven have Buy or Strong Buy ratings, the same number as in the previous quarter. The number of Sell or Strong Sell ratings has dipped from 13 to 11 quarter over quarter. At a share price of around $15.00, the upside potential based on a median price target of $17.00 is 13.3%. At the high target of $32.00, the upside potential is 113.3%.
Paramount is expected to post first-quarter revenue of $7.45 billion, up 2.5% sequentially but 4.2% lower year over year. Analysts are forecasting an adjusted loss per share of $0.02, down from EPS of $0.09 in the prior quarter and down from EPS of $0.64 in the year-ago quarter. For the full 2023 fiscal year, analysts are looking for EPS of $0.62, down 64% year over year, on revenue of $30.53 billion, up 1.2%.
The stock trades at 24.9 times expected 2023 EPS, 11.0 times estimated 2024 earnings of $1.40 and 9.0 times estimated 2025 earnings of $1.69 per share. Paramount’s 52-week trading range is $13.80 to $27.49. The company pays an annual dividend of $0.20 (yield of 1.29%). Paramount cut its annual dividend from $0.96 per share with the March payment. Total shareholder return for the past 12 months was negative 37.40%.
Originally published at 24/7 Wall St.
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