We recently published a list of the 13 Best High Volume Stocks to Buy Now. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other best high volume stocks.
On May 9, BMO private wealth chief market strategist Carol Schleif joined CNBC’s ‘Squawk Box’ to discuss the latest market trends and the state of the economy. Reflecting on a market decline in April that reached a ~20% drop, Schleif noted that the market recovered and ended only 3% to 4 % down. She described investor reactions during that period as mixed: about 10% were very eager to buy, but another 10% were quite nervous, while the majority remained measured. She emphasized the important distinction between markets and the economy and noted that markets often move ahead of economic realities and quickly shift focus to new topics as part of their discounting mechanism. This is why markets serve as economic indicators and anticipate future developments.
She talked about how individual risk tolerance varies, with some younger clients adopting conservative strategies and some older clients favoring aggressive positions, especially in tech. Schleif acknowledged that tariffs are expected to rise from under 3% to ~10%, but despite this anticipation, she’s confident that markets and companies will adjust to the changes. She noted the unusual shift in US influence, which now extends beyond material control to more intangible domains, and described this shift in responsibility as significant and complex. Schleif also emphasized the value of globally diversified portfolios, which have been challenging to maintain during periods when the US market outperformed. However, she noted that such diversification, which includes fixed income and foreign equities, has provided better performance and protection year-to-date and helps investors weather volatility better than those concentrated solely in US assets.
Our Methodology
We first used stock screeners to compile a list of stocks with high average 3-month volumes. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
Note: All data was collected on May 12.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A software engineer intently typing code into a laptop with multiple screens in an office.
Palantir Technologies Inc. (NASDAQ:PLTR)
Average Volume (3-Month): 112.96 million
Number of Hedge Fund Holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms for the intelligence community and US commercial customers to help with data analytics. It provides unified access to open-source, self-hosted, and commercial LLMs that can transform structured and unstructured data into LLM-understandable objects.
On May 6, Cantor Fitzgerald raised its price target for Palantir from $98 to $110 with a Neutral rating. This adjustment came after the company’s Q1 2025 earnings, which outperformed the overall results in the US commercial sector, where revenue surpassed projections by 10%, and overall government revenue, which surpassed projections by 5%. The company’s US revenue particularly grew by 55% year-over-year and made up 71% of the company’s total business.
This segment achieved a $1 billion annual revenue run rate in Q1 due to the demand for AIP. US commercial Total Contract Value booked reached $810 million, which was a 239% increase on a dollar-weighted duration basis, with twice as many deals of $1 million or more closed year-over-year. Palantir Technologies Inc. (NASDAQ:PLTR) has also raised its full-year 2025 US commercial revenue guidance to over $1.178 billion, which projects a growth rate of at least 68%.
Alger Mid Cap Focus Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) builds advanced platforms for data integration, management, and security, enabling interactive, AI-assisted analysis for its users. Its core offerings include Palantir Gotham, designed for government clients, and Palantir Foundry, tailored for commercial customers. Originally focused on U.S. intelligence agencies, Palantir has expanded into defense contracts with western governments and entered the commercial market in 2016. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, along with management raising its full year 2024 revenue guidance. Management noted that the recent launch of its AI platform (AIP), which leverages generative AI to optimize business operations, has driven significant growth and investor interest. Additionally, we believe Palantir could be a key partner for the U.S. government’s new Department of Government Efficiency (DOGE), as its AI-driven platforms are ideally suited to help identify inefficiencies, allocate resources effectively, and achieve cost reductions.”
Overall, PLTR ranks 8th on our list of the best high volume stocks to buy now. While we acknowledge the growth potential of PLTR, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
