By Matthew Galgani

Palantir logo illustration. REUTERS / Dado Ruvic File Photo

As a provider of enterprise software with a focus on decision-making tools, Palantir Technologies (PLTR) continues to leverage artificial intelligence across a wide range of industries. Its latest moves include a major initiative to help speed up U.S. Navy operations, and an AI partnership with Accenture (ACN) to streamline the federal government.

These and other developments have propelled Palantir stock onto Investor's Business Daily's Leaderboard. Earning the highest-possible 99 Composite Rating and a 1.8 up/down volume ratio, this year's top S&P 500 stock remains in buy range as it trades near its all-time high. But the principles of risk management remind investors to stay vigilant and cautious when making new buys.

Warp Speed For Warships

Last week, Palantir and the BlueForge Alliance announced the launch of Warp Speed for Warships.

The BlueForge Alliance is a nonprofit integrator supporting the U.S. Navy's efforts to strengthen the maritime industrial base. The Warp Speed for Warships program will focus on accelerating warship production, fleet readiness and digital transformation.

The initiative is funded by the U.S. Navy's Maritime Industrial Base Program. It extends a strategic collaboration between the BlueForge Alliance and Palantir to power high-velocity shipbuilding, sustaining a powerful fleet and reestablishing American maritime dominance.

Using Palantir's Warp Speed manufacturing operating system, Warp Speed for Warships aims to better connect the network of shipbuilders, suppliers and partners responsible for building and sustaining the Navy's fleet.

Palantir, Accenture To Streamline Government AI

Last month, Accenture Federal Services, a subsidiary of Accenture, and Palantir announced what the companies called a landmark strategic partnership. Accenture Federal was named as a Palantir preferred implementation partner for U.S. federal government customers.

Aiming to reinvent operations using artificial intelligence, Palantir and Accenture will deploy AI-powered solutions to address federal agencies' top operational challenges. The collaboration will focus on initiatives ranging from optimizing and orchestrating mission-critical workflows to enhancing decision-making and increasing operational resilience.

Palantir Stock Blasts Into New Buy Range

Boosted by strong and steady earnings and sales growth, Palantir made the latest list of new buys by the best mutual funds alongside fellow top AI stocks Broadcom (AVGO) and Nvidia (NVDA). The strong 1.8 up/down volume ratio and four quarters of rising fund ownership mark further signs of demand for Palantir stock.

Including 54% earnings growth to 14 cents per share in its latest report, the AI leader has generated average earnings growth of 60% over the last three quarters. Over the last three years, Palantir has posted average annual earnings growth of 108%.

In addition to its spot on IBD Leaderboard, Palantir has also landed on the IBD 50, IBD Big Cap 20 and IBD Sector Leaders watchlists.

Powerful growth and strong institutional demand lifted Palantir stock to a record high last month. And shares have now crafted a 133.49-140.16 buy zone from an alternate handle entry. Palantir currently trades within that range as it pops back above its 21-day exponential moving average.

On Monday, shares popped nearly 4% to close just within buy range at 139.12.

If you're looking to establish a new position in Palantir stock, please keep in mind rules for how to buy stocks and when to sell.

Palantir's current base is a fourth-stage pattern. Such late-stage bases entail more risk than first- or second-stage setups. So while Palantir could certainly keep rising, investors should take into account the big run it has already made.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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Source: IBD