Barron's: Palantir Is the S&P 500’s Top Stock This Year. It May Keep Climbing.

Palantir Is the S&P 500’s Top Stock This Year. It May Keep Climbing.

By Paul R. La Monica

Palantir CEO Alex Karp gave an incredibly bullish outlook during the earnings call with analysts. (David Paul Morris/Bloomberg).

Palantir Technologies is Wall Street’s “it” stock of the moment. The defense contractor reported earnings and revenue last week that blew away forecasts and the artificial intelligence wave could also boost its business from commercial customers.

The stock is up nearly 55% this year, making it the best performer in the S&P 500, and Palantir CEO Alex Karp gave an incredibly bullish outlook during the earnings call with analysts.

All of that has given Palantir an almost cultlike following. Jerry Sneed, Managing Partner at Third View Private Wealth even compared Karp to Nvidia CEO Jensen Huang, calling them both geniuses.

But can Palantir, which is near a record high, continue to soar? The stock trades at a heady valuation of more than 200 times earnings estimates for this fiscal year...