Palantir Technologies (PLTR) represents one of the few pure plays on cybersecurity in the financial markets. Yet, the company is actually branching out into areas you might not expect.
Not too many people would consider PLTR to be a COVID-19 stock, but recent dealings with the U.S. government suggest otherwise.
At the same time, we shouldn’t ignore the company’s value as a provider of Big Data services for intelligence agencies. In that niche market, Palantir Technologies is an undeniable leader. (See Palantir stock charts on TipRanks)
Finally, we should observe that PLTR stock is near the bottom of a significant range. There’s a whole lot to unpack here, so let’s jump right in.
A Quick Look at PLTR Stock
The first thing to note is that Palantir’s next quarterly earnings report is scheduled to take place on August 12. Therefore, it’s entirely possible that the PLTR stock price will be radically different in a few days’ time.
That being said, it’s clear that PLTR stock is sitting in the buy zone. Since November of last year, the stock has bounced between $20 and $40.
That’s a wide range, but it suggests that traders can buy Palantir stock whenever it gets close to $20, with their sell target set at $40.
One time within the past year, PLTR stock actually touched a 52-week high of $45. That might have been a fluke, though – or a Reddit-fueled run-up – so don’t expect a repeat of that rally.
Informed traders must be realistic with their price goals. In the case of Palantir stock, it was trading around $21-$23 in early August.
If you can catch it in that area, then you might be able to ride PLTR stock all the way back up to $30 and, if the momentum and trading volumes are strong, even $40 for a substantial gain.
Getting Serious about Cybersecurity
Palantir is sometimes viewed as a go-to provider of cybersecurity services for government and related agencies.
As a result, it’s probably bullish for PLTR stock when governments take cybersecurity seriously.
It appears that the Joe Biden administration is, indeed, taking this issue seriously. As you may recall, this issue came into focus in May, when there was a ransomware attack on Colonial Pipeline, which provides the U.S. East Coast with 45% of its gasoline, jet fuel and diesel.
In response to that, the Biden administration issued an executive order stating, “It is the policy of my Administration that the prevention, detection, assessment, and remediation of cyber incidents is a top priority and essential to national and economic security.”
More recently, the Biden administration followed up with a national security memorandum, calling for “a voluntary, collaborative effort between the Federal Government and the critical infrastructure community to significantly improve the cybersecurity of these critical systems.”
An Unexpected COVID-19 Angle
Palantir stockholders can appreciate and celebrate the current administration’s attitude toward cybersecurity.
Meanwhile, stakeholders might be pleased to discover an additional connection between Palantir and the U.S. government: Palantir is actually helping in the ongoing battle against the COVID-19 pandemic.
In mid-2020, the U.S. Department of Health and Human Services tapped Palantir to build Tiberius, a software platform which can track vaccine production, distribution, and administration across the U.S.
This agreement has been renewed for another year, as Palantir announced in July.
In total, Palantir Technologies has supported more than 100 organizations in their responses to the pandemic. These organizations include the U.K.’s National Health Service as well as entities within the U.S. government and military.
Wall Street Weighs In
According to TipRanks’ analyst rating consensus, PLTR is a Hold, based on two Buy, two Hold, and two Sell ratings. The average PLTR price target is $22.33, implying 2.34% upside potential.
Clearly, Palantir Technologies is a premier cybersecurity solutions provider, but really it’s much more than that. Its contracts with stable entities, such as governments, bolster this cybersecurity company’s value for investors.
If you’ve been sitting on the sidelines, you’ve just been handed a gift from the markets: a great entry point for PLTR stock.
Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.
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