Both PLTR and DELL have built sizable year-to-date gains, and could soon add to them
Two tech stocks are making moves on the charts today. On Friday after the close, it was announced Palantir Technologies Inc (NYSE:PLTR) and Dell Technologies Inc (NYSE:DELL) would join the S&P 500 Index (SPX) starting Sept. 23. Palantir is replacing American Airlines (AAL), while Dell is replacing e-tailer Etsy (ETSY). PLTR and DELL are both ripping higher in response to the news.
Palantir stock was last seen up 12.1% to trade at $33.94, and earlier hit a three-year high of $34.13. This is poised to be PLTR's best single-session pop since a 30% post-earnings bull gap of 30.8% on Feb. 6. The shares have more than doubled in value in the last 12 months, while their 40-day moving average has stepped up as support since June.
Given this outperformance, the 12 of 16 analysts in coverage maintaining "hold" or worse ratings looks notable, especially considering the 12-month price target of $25.69 is a 24% discount to PLTR's current perch. A round of upgrades and/or price-target hikes could keep the wind at the equity's back.
Dell stock was 4.4% higher to trade at $106.46 at last ckeck. Despite a 22% drawdown this quarter, the shares are still 39% higher year to date. Keep an eye on the security's 14-day Relative Strength Index (RSI), as well, sitting in "oversold" territory at 28.