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Stock Analysis: Palantir & Delta Air Lines Stock Analysis: Palantir & Delta Air Lines

U.S. stocks closed higher last week with the S&P 500, Nasdaq, and Dow Jones all reaching new records. The positive momentum was largely driven by optimism surrounding a potential interest rate cut by the Federal Reserve in the coming months. As investors gear up for the week ahead, all eyes are on the upcoming congressional testimony from Fed Chairman Jerome Powell for further insights into the economic outlook.

While the market anticipates a rate cut, key economic data, including the U.S. consumer price inflation report for June, will also be closely watched to gauge the health of the economy. Alongside these events, a new earnings season kicks off, with major banks such as JPMorgan Chase, Wells Fargo, and Citigroup set to release their quarterly results.

Potential Buy: Palantir

Palantir (NYSE:), a prominent application software company, is poised for a breakout this week. The stock’s technical analysis suggests a bullish trend, with expectations of surpassing $30 in the near term. Trading just below its 2024 peak, Palantir shows strong support levels, indicating further upside potential. The company’s focus on artificial intelligence and data analytics has garnered significant attention, driving its stock price up by 58.6% year-to-date.

With an upcoming earnings report in early August, where analysts expect strong growth in both earnings and revenue, Palantir remains attractive for investors looking to capitalize on the AI innovation wave. The positive sentiment is reinforced by increased analyst optimism and a favorable earnings forecast for the upcoming quarter.

Potential Sell: Delta Air Lines

Conversely, Delta Air Lines (NYSE:) faces challenges in the current market environment. With the airline industry grappling with reduced demand and economic uncertainties, Delta’s upcoming Q2 update is anticipated to reflect these headwinds. Analysts project a decline in earnings compared to the previous year, attributing it to cost pressures and shrinking operating margins.

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The airline’s stock performance has been lackluster, with a downward trend observed since its peak in May. Concerns over profitability and cash flow, compounded by rising fuel prices and maintenance costs, paint a cautious outlook for Delta Air Lines. Investors are advised to exercise caution given the turbulent operating environment and the impending earnings release.

For comprehensive market insights and real-time updates, investors are encouraged to leverage tools such as InvestingPro for timely and informed decision-making. Whether assessing stock valuations, exploring top investment ideas, or monitoring market trends, having access to reliable resources can enhance investment strategies in today’s dynamic market landscape.

Disclaimer: The author holds positions on various financial instruments mentioned, and the views expressed are personal opinions and not financial advice. Follow Jesse Cohen on Twitter for more market analysis and insights.