*Palantir: (PLTR) Buy, $16.50 One year target $20.*
*Invest 5 Years, 18-20% annual return.*
EPS Growth P/E PEG Sales Sales Growth P/S PS/G
0.30 29% 55 1.9 2.2 24% 16 67%
Palantir is a solid performer in the Data Analytics and AI space.
Their government business segment is a massive cash cow and a moat, because of long duration and sticky contracts and switching costs.
The commercial segment is growing much faster at 50%, and will be its growth engine, with the help of its Artificial Intelligence Platform (AIP), which tripled the number of users in the past quarter, with over 300 organizations using the new product in the last 5 months.
The stock is expensive especially after doubling last year but can be bought in installments and declines. I own some with an average cost of $15.
CPI Report: Inflation was slightly higher than expected.
Taiwan Semiconductor Manufacturing(TSM) Buy, $100 One year target $120.
Invest 5 Years, 15 % annual return. P/E 20, 3-5 year EPS growth 18-20%.
The Semiconductor foundry (manufacturing) leader by far with about 50% market share has large and deep moats in new processes, scale and costs. The semiconductor industry would collapse without it – it would take years for Global Foundries, Intel, Samsung, et al to even come close to catching up. Consider that TSM is spending up to $40Bn to set up a new foundry in Arizona, and it’s having trouble finding enough qualified people for its plant.
Revenue growth of 12-14% and earnings growth of 18-20% for the next three years augur well for the company. Normally TSM would be priced at over 40X earnings and closer to 10x sales, about twice the current price. Unfortunately, it being located in Taiwan and with China’s open design on it – multiples will always stay lower because of these geopolitical tensions. Still, the stock has rewarded investors well in the past with steady appreciation in the mid teens. It’s a must have for the portfolio specially for long term steady growth.
Palantir: (PLTR) Buy, $16.50 One year target $280.
Invest 5 Years, 16-20% annual return. P/E 34, 3-5 year EPS growth 14-16%.
CPI Report: Inflation was slightly higher than expected.
December Consumer Price Index: +0.3% M/M vs. +0.2% expected and +0.1% prior.
+3.4% Year on Year vs. 3.2% expected and +3.1% prior month
Core CPI, which excludes food and energy: +0.3% M/M vs. +0.2% expected and +0.3% prior. +3.9% Year on Year vs. 3.8% expected and +4.0% prior.
Stock Futures are flat as is the 10 year Treasury yield at 4.02%