Stocks covered in this article:
Palantir, UPS and CleanSpark
Topic one: Palantir
We have software titan Palantir. The big data-analytics specialist has made waves on the stock market since its initial public offering back in September 2020. At the moment, PLTR stocks are sitting on gains of over 160% since then. Even Jefferies analyst Brent Thill hailed the company behind it as “best-of-breed” and predicts annual sales growth of 30% for the foreseeable future. For one thing, Palantir provides scalable and affordable big-data solutions for some major clients. These include the U.S. Department of Defense and the U.K.’s National Health Service. In light of all the current hype around PLTR stock, investors might be wondering if it still has room to grow In its third-quarter fiscal posted in November, the company reported a phenomenal 52% leap in total revenue year-over-year. Adding to that, the company also ended its quarter with $1.8 billion in cash on hand and raised its full-year 2020 revenue guidance. Palantir seems confident about its performance moving forward. That’s understandable with its powerful clients and solid financials. But, considering how reliant the company is on contracts, investors would be more concerned about its latest moves.
Well, fret not. Palantir seems to have no plans of slowing down anytime soon as it has just signed another contract with the U.S army. In brief, the company was selected to deliver a prototype for the army’s Ground Station modernization initiative. This will be in support of its targeting systems program known as TITAN. For now, the TITAN contract holds a value of $8.5 million in the first phase. If Palantir plays its cards right, it could be up for the $250 million overall payouts across the project’s four phases. All things considered, will you be adding PLTR stock to your watchlist?
Topic two: UPS
United Parcel Service (UPS) is the world’s largest express carrier and package delivery company. It’s bigger than archrival FedEx (FDX). UPS stock plunged due to impact from coronavirus, but then skyrocketed amid the e-commerce boom but while the e-commerce revolution has boosted package shipments, UPS earnings growth has been sluggish of late. Also, the loss of some Amazon.com (AMZN) business and the weak global economy also pose notable risks. The Q2 earning was up over 50% Q3 was up 30% and the Q4 is also expected to be up as well. We have had a nice pull back on it because of Amazon’s loss of business. The firm is looking to cut its capital expenditures budget to $4 billion in 2021, which compares to a spend of $5.6 billion in 2020. This will be a bonus to them if they can hit the cut. Will this be another winner of 2021? Time will tell.
Topic three: CleanSpark
Solar software solutions company CleanSpark is another top software stock to watch right now. The software and service company provides microgrid and energy resource management solutions across various markets. Given the current renewable energy tailwinds, the company seems well-positioned to make the most of the current trends. CLSK stock seems to reflect this as it sits at gains of over 680% in the past year.
On the financial front, CleanSpark appears to be making strides as well. In its fiscal year 2020 report, it more than doubled in annual revenue year-over-year. Impressively, this marked the third consecutive year of triple-digit annual revenue growth for the company. CEO Zach Bradford explained, “This was an excellent year for CLSK, despite challenging economic conditions resulting from the COVID-19 pandemic. Fortunately, the impact of the COVID pandemic on CleanSpark has been relatively minimal to date.” Bradford cites the company’s focus on delivery consistency, increased sales efforts, and product enhancements as key contributors to this growth. Despite its stellar year, CleanSpark does not seem to be resting on its laurels just yet.
Just yesterday, it announced the addition of another residential microgrid contract into its portfolio. Through the agreement, CleanSpark will deliver energy modelling, analytical services, and storage solution implementation in an all-in-one microgrid package. Customer Frank Huerta commented, “The single greatest value, for us, is to have the confidence and security that our home is not subject to unpredictable energy interruptions that are beyond our control…you really can’t put a price on that. We plan to someday expand this system to fully disconnect our home from the utility connection.” It seems that CleanSpark delivers quality and its customers are satisfied. Will CLSK stock benefit from this in the long run? Your guess is as good as mine.