Did You Miss Out On Palantir? These Two Stocks Could Eventually Outperform It
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Every year, stock trading has stories of companies that get white-hot and have their share price shoot through the stratosphere. Palantir, whose stock has risen by an estimated 600% since 2020, qualifies as one of those stories. This has had the kick-on effect of making many Palantir investors rich while also inspiring other investors to find stocks that outperform Palantir. Keep reading to discover two potential candidates.
Don’t Miss:
Palantir is a company that specializes in making software platforms that help big data and analytics firms operate more efficiently. As AI, cloud computing, and other technological advances have become more prominent, their data processing needs have grown exponentially. This has given Palantir a tremendous market share for its products and helped raise its share price from the $8 range in October 2020 to its current price of $72.46 (see stock ticker link).
Companies with large global market shares in sectors essential to the global economy are great places to start when looking for growth stocks with the potential to outperform Palantir. As AI and computing begin consuming and storing more data, the importance of securing all that data grows exponentially. Directed denial of service attacks (DDOS) and hacking are some of the biggest threats to the global computing infrastructure.
That’s what makes companies like CrowdStrike so important. CrowdStrike provides internet and cybersecurity solutions for websites, computer networks, and global companies. This summer, the company made the news for all the wrong reasons when it experienced a major outage that sent its shares tumbling from the $375/share range to around $210.
That outage only underscored the importance of cybersecurity. Crowdstrike’s shares have since rebounded to $353.60. That means CrowdStrike has recovered almost all the lost share value in a few short months. More importantly, CrowdStrike shares have exploded in value from $45 in December 2019 to $353.60 in the past five years.
Despite that, Palantir’s estimated market cap of $164 billion is nearly double Crowdstrike’s $87 billion (see Benzinga stock ticker link above). There can be no underestimating the importance of data analytics, but data is worthless if it can’t be secured. That reality gives CrowdStrike the potential to be a recession-resistant stock that will continue to grow and eventually outperform Palantir.
Very few sectors offer the profit potential of the U.S. defense industry, and Lockheed has been a major player in this sector for decades. The company develops advanced computer systems for aerospace exploration, aeronautics controls, and missile guidance systems. More importantly, it has numerous long-term contracts with the United States and its security partners worldwide.
Those long-term contracts give Lockheed the revenue to spend on research and development, thereby maintaining its status as a global leader in its field. Additionally, an incoming Republican administration usually means an increase in defense spending. Lockheed Martin’s estimated market cap is $119.88 billion (see stock ticker link). An increase in global instability could see a rapid rise in revenue or market cap for this defense contractor.
EquityMultiple’s ‘Alpine Note — Basecamp Series’ is turning heads and opening wallets. This short-term note investment offers investors a 9% rate of return (APY) with just a 3 month term and $5K minimum. The Basecamp rate is at a significant spread to t-bills. This healthy rate of return won’t last long. With the Fed poised to cut interest rates in the near future, now could be the time to lock in a favorable rate of return with a flexible, relatively liquid investment option.
