Wednesday's IBD 50 Stocks To Watch pick is artificial intelligence leader Palantir Technologies. The AI stock is trying to regain a recent entry, which would place the market leader back in buy range. And next week, the company's second-quarter results are due.
The company offers software for a range of industries, including energy, defense, auto and health care to address a range of business needs such as optimizing workflow, supply chain management, and software security.
Palantir continues to make progress with its Artificial Intelligence Platform, initially rolled out in early 2023.
Palantir hosted its fourth AIP event on June 6. At AIPCon4, Palantir said over 70 customers presented their prototype to production-grade AI use cases via Palantir's "boot camps," said a Jefferies report. More than 1,300 AIP boot camps have been completed since 2023, including 900 this year and nearly 500 since March.
Second-quarter earnings for Palantir stock are due on Aug. 5. Analysts polled by FactSet estimate Q2 EPS of 8 cents on an adjusted basis, up 61%. Revenue is expected to rise 22% to $653 million.
For its full year, Palantir earnings are expected to jump 32% to 33 cents per share, according to IBD MarketSurge. Earnings are expected to rise another 19% in 2025.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
AI Stock Eyes Buy Range
After clearing a 26.57 buy point in a cup with handle earlier this month, shares are trying to regain an alternate entry at 27.50. That places the 5% buy zone up to 28.88, according to MarketSurge pattern recognition. Shares climbed 3.4% midday Wednesday, just shy of the higher entry.
The relative strength line hit a new high this month. The RS line compares a stock's price performance vs. the S&P 500.
Due to big earnings growth in recent quarters and strong price performance year-to-date, Palantir stock boasts a 96 out of 99 IBD Composite Rating, according to IBD Stock Checkup. That makes the AI stock a market leader to watch.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Other Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Goldman Sachs | 471.48 | Flat base | |
| MercadoLibre | 1,792.05 | Cup with handle | |
| Ryan Specialty | 61.29 | Flat base |
Source: IBD Data As Of July 31
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
