1 Stock-Split Stock to Buy Now -- It Has More Upside Than Palantir Technologies, According to Wall Street

Palantir Technologies (PLTR) has seen its stock climb 130% year-to-date, driven by its AI-focused platforms and market leadership in decision intelligence, with analysts projecting a 17% upside despite its historically high 115x price-to-sales ratio. In contrast, O'Reilly Automotive (ORLY) offers a 20% analyst-projected upside, reporting an 8% revenue increase and 12% net income growth in Q3, benefiting from a robust distribution network and a potential tailwind from auto tariffs encouraging extended vehicle ownership.

Analysis

Palantir Technologies (PLTR) has experienced a significant 130% year-to-date stock climb, driven by its advanced AI platforms like AIP and its recognized market leadership in decision intelligence by IDC and Forrester. Analysts project a median target of $200, indicating a 17% upside, capitalizing on an anticipated 29% annual growth in data analytics spending through 2030.

However, PLTR's valuation remains a critical concern, trading at an extreme price-to-sales (P/S) ratio of 115, nearly three times higher than the next S&P 500 software company. This historically unprecedented multiple raises questions about its long-term sustainability, as highlighted by Brent Thill of Jefferies, contributing to a cautious sentiment despite its technological prowess.

Conversely, O'Reilly Automotive (ORLY) delivered robust Q3 financial results, with revenue increasing 8% to $4.7 billion and GAAP net income rising 12%, bolstered by new store openings and a 5.6% increase in same-store sales. The company benefits from a strong distribution network and a potential tailwind from auto tariffs, which could encourage consumers to service older vehicles.

Analysts project a 20% upside for ORLY with a median target of $113 and anticipate 14% annual earnings growth over the next three years, valuing it at 34 times earnings, which is considered expensive but not excessively so. The upcoming 15-for-1 stock split in June 2025 is a notable future corporate action.

Key Decisions for Investors

• Investors should critically assess Palantir's historically high 115x price-to-sales valuation, weighing its AI leadership against potential valuation compression risks.
• Consider O'Reilly Automotive for its robust Q3 performance, strategic distribution network, and potential tailwinds from auto tariffs, despite its 34x earnings multiple being somewhat elevated.
• Monitor Palantir's future growth trajectory and O'Reilly's ability to sustain its earnings growth, potentially using any market pullbacks as entry points for the latter.