Palantir Is Priced for Perfection. These 2 Defense Stocks Are Priced for Pessimism.
AI defense spending is booming, but not every stock reflects that optimism. Two contractors trade at low multiples and may have more upside.
Overview
Palantir Technologies (NASDAQ: PLTR) is one of the most talked-about names in the defense space right now. But the company has one big problem: it's priced for perfection. Any bad news could be enough to send the stock crashing.
Trading at a 159 times trailing earnings (price-to-earnings) multiple, the company looks exceedingly expensive to many investors. And while I like the business, I'm a little wary of its consistently elevated valuation.
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Originally published at www.fool.com.
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