Prediction: 3 Stocks That Will Be Worth More Than Palantir 5 Years From Now
These tech stocks are growing at an impressive pace, and they are significantly cheaper than Palantir.
Overview
Palantir Technologies (NASDAQ: PLTR) has been in sizzling form on the stock market over the past three years, jumping by an incredible 1,140% during this period and outperforming the Nasdaq Composite's returns of 101% by a massive margin.
The red-hot rally in Palantir stock in recent years has brought its market cap to $440 billion. The good news for Palantir investors is that it can deliver more gains in the long run amid the growing demand for artificial intelligence (AI) software. After all, Palantir is a key player in this space, and its growth has been accelerating. However, there is a major factor that could limit more upside in Palantir stock -- the valuation.
Details
Palantir's earnings multiple of 152 and sales multiple of 74 clearly tell us that the stock isn't cheap. So, the company will have to sustain terrific growth to justify these multiples. This is precisely why I think that Dell Technologies (NYSE: DELL), Lam Research (NASDAQ: LRCX), and Sandisk (NASDAQ: SNDK) are in a better position to deliver more upside over the next five years compared to Palantir, which could make them more valuable in terms of market cap.
Source
Originally published at www.fool.com.