Better Buy: Palantir Stock vs. UnitedHealth Group Stock
Two stocks that have been at the center of financial news stories throughout the year are data mining specialist Palantir Technologies (NASDAQ: PLTR) and health insurance giant UnitedHealth Group (NYSE: UNH).
The reasons these two companies are fetching so much attention, however, couldn't be more opposite.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Palantir has emerged as a darling of the artificial intelligence (AI) revolution. As of this writing (June 5), shares of the stock have gained nearly 60% on the year -- making it one of the top performers in the S&P 500 and Nasdaq-100 indexes.
By contrast, UnitedHealth Group stock is the worst-performing name in the Dow Jones Industrial Average -- with shares plummeting by more than 40%.
Is now the time to hop on the Palantir train, or should investors take an inventory check on UnitedHealth and choose to buy the dip?
Palantir is on a run for the ages
It's been just over two years since Palantir released its Artificial Intelligence Platform (AIP), a software suite that's proven to be a transformative game changer in the company's pursuit of competing with the largest players in the tech landscape.
PLTR Revenue (Quarterly) data by YCharts
Since releasing AIP, Palantir has unlocked a new wave of revenue acceleration -- thanks in large part to the company's impressive penetration of the private sector. For most of its history, Palantir relied heavily on government contracts from the Department of Defense (DOD).
While deals with the U.S. Military and its allies are still an important cornerstone of Palantir's business, AIP has helped the company break ground in a host of other use cases -- financial fraud, supply chain and logistics, aviation, and much more.
What might be most impressive about Palantir's transformation over the last two years is how rapidly the company transitioned from a cash-burning operation to one that generates consistent profitability. Not only is Palantir acquiring new business, but it's also monetizing these customers in a profitable way. That's a lucrative combination, indeed.
The one idea that's paramount for smart investors to understand is that while Palantir's business is soaring, so is the company's share price. As of this writing, Palantir trades at a price-to-sales (P/S) ratio of 97.
Not only is that magnitudes higher than any of its peers in the software realm, but it is historically high compared to what investors witnessed during the dot-com bubble in the late 1990s.
I don't think I'm the only one who has noticed the pronounced valuation expansion in Palantir, either. Consider that Cathie Wood's Ark Invest portfolio has been trimming Palantir stock as of late, and billionaire money manager Stanley Druckenmiller completely dumped his firm's stake in the AI stock during the first quarter.
UnitedHealth Group can't seem to get out of its own way
UnitedHealth Group's coverage couldn't be any more different than Palantir's. While investors continue to cheer on Palantir's dominance, it seems that only negativity surrounds UnitedHealth at the moment.
At the core of the health insurer's problems are some operational hiccups. Mismanagement in forecasting utilization rates in the company's Medicare Advantage business, as well as some unforeseen challenges in the pharmacy benefits management (PBM) segment, caused management to reduce financial guidance for 2025.
If this weren't enough to get investors worked up, UnitedHealth also replaced its CEO as the company seeks to right the ship and turn things around by next year.
UnitedHealth's downward revision and executive changes were met with a stock sell-off for the ages. Don't believe me? As of this writing, shares of UnitedHealth trade at $296 -- hovering near a five-year low.
Which stock is the better buy?
Despite its near-term headwinds, UnitedHealth stock looks awfully tempting at a forward price-to-earnings (P/E) multiple of just 13. When you consider that insiders have been buying the stock in the aftermath of this epic sell-off, I'm cautiously optimistic that all of the bad news surrounding UnitedHealth is priced in.
UNH PE Ratio (Forward) data by YCharts
On the other side of the equation, I think it's becoming increasingly difficult to argue that max upside isn't already priced into Palantir. Sure, I'm bullish on the company's future, but buying the stock near an all-time high doesn't seem like a prudent idea right now.
Overall, I'd choose to buy the dip in UnitedHealth as opposed to chasing the momentum fueling Palantir stock at the moment.
Should you invest $1,000 in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!*
Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 2, 2025
Adam Spatacco has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
2 hours ago
- National Post
Lenovo Ranks 8th in the Gartner® Supply Chain Top 25 for 2025
Article content MORRISVILLE, N.C. — Lenovo has once again secured a position in the Gartner Supply Chain Top 25 for 2025, recognizing its excellence in supply chain operations and placing eighth, up two places from last year, among global leaders across various industries, including pharmaceutical, automotive, FMCG, and technology. The Gartner ranking highlights companies that consistently demonstrate leadership in supply chain strategy and execution. Article content Lenovo's mission to bring Smarter AI to every household and every industry applies equally to the digital transformation of its own business operations, where AI plays a central role in enhancing efficiency and building long-term resilience across global operations and the company's supply chain. Article content Article content 'At Lenovo, our mission is to create Smarter AI for All,' said Che Min Tu, SVP and Group Operations Officer. 'To build the kind of technology our customers expect, we need to lead by example within our own business. By integrating AI across our global supply chain, we're not only able to support the growing business demand, but also improve the customer experience, and cut order-to-ship times in what is arguably one of the most complex and dynamic global business environments.' Article content The company's digital transformation journey over the past eight years has focused on streamlining planning, enhancing procurement and supplier collaboration, and improving logistics visibility. These changes also supported Lenovo's environmental goals by aligning supply chain improvements with its Environmental, Social, and Governance (ESG) commitments. Article content AI is now accelerating these gains. Lenovo teams utilize AI-powered tools for faster decision-making and deeper insights, while AI agents provide targeted support to resolve issues efficiently. This work has been undertaken by a team of over 75 Lenovo researchers, including 22 PhDs, who developed a set of AI tools designed to support the objectives of Lenovo's global supply chain. Article content Within Lenovo's global supply chain, AI has significantly enhanced planning accuracy and accountability, leading to more efficient and cost-effective operations. The introduction of intelligent production scheduling has streamlined the scheduling process, allowing for quicker and more responsive production decisions. Article content 'The use of AI in our systems is ultimately benefiting our customers. AI-driven customer sentiment analysis has provided deeper insights into customer needs and recurring issues, resulting in improved customer satisfaction and better warranty-related performance,' said Guan Wei, SVP and Head of Global Supply Chain. Lenovo's supply chain spans over 30 manufacturing sites in 11 markets across the Asia Pacific, China, Europe, the Middle East and Africa, North America, and South America regions. In February 2025, Lenovo, in partnership with Alat, broke ground on a new manufacturing base in Riyadh, Kingdom of Saudi Arabia. Scheduled to come online in 2026, this new facility will manufacture millions of laptops, desktops, and servers for the region. Lenovo's global manufacturing footprint provides the ultimate flexibility and resilience, enabling the company to respond quickly and navigate any global situation effectively. Article content Ben Massie, Vice President of Global Supply Chain for Lenovo's Infrastructure Solutions Group, said: 'As supply chains become more complex, staying resilient is no longer enough. Lenovo is now focused on becoming 'anti-fragile'—not just withstanding disruption but getting stronger because of it.' Article content The Supply Chain Top 25 ranking comprises two main components: business performance and opinion. Business performance in the form of public financial and ESG (environmental, social, governance) data provides a view into how companies have performed in the past three years, while the opinion component offers an eye to future potential and reflects leadership in the supply chain community. These two components are combined into a total composite score. Article content Gartner derives a list of companies from a combination of the Fortune Global 500 and the Forbes Global 2000. In an effort to maintain the list of companies evaluated at a manageable level, a general annual revenue threshold of $15 billion has been applied and companies without physical supply chains are excluded. Article content . Article content Gartner Insights: Article content . Article content GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Article content About Lenovo Article content Lenovo is a US$69 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world's largest PC company with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo's continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit and read about the latest news via our StoryHub. Article content Article content Article content Article content
Globe and Mail
3 hours ago
- Globe and Mail
SteadyWise Unveils Next-Generation Debt Relief Program to Help Americans Take Control of Their Financial Future
An innovative, personalized approach to navigating debt relief with clarity, confidence, and control. SteadyWise, a next-generation debt relief company, is redefining debt relief for millions of Americans through its debt relief program. The consumer-first financial wellness company has designed a program that helps people understand their debt options clearly, making it easier to identify realistic, personalized solutions rather than generic one-size-fits-all solutions. Debt relief has proved to be a complex landscape for people to navigate. From consolidation strategies to non-profit debt management plans and settlement programs, individuals and families are presented with a lot of information and processes to sort through. According to SteadyWise, the majority of Americans drowning in debt do not know where to begin or even whether they qualify for legitimate relief options. Yet, they are served countless ads promising instant solutions, often without explaining how they work for each person's unique situation. As financial pressures rise for millions of Americans, SteadyWise is stepping in with a debt relief program that tackles this problem head-on. The smarter, personalized program puts people back in control of their financial future. 'With household budgets under siege from inflation, rising interest rates, and mounting debt, many Americans are struggling to stay afloat,' said Elige Carter, co-founder of SteadyWise. 'People are overwhelmed and unsure who to trust while their debts keep growing. That is why we founded SteadyWise. Our goal is to give people clarity, confidence, and help them make real savings.' The SteadyWise Debt Relief Program was created as an innovative financial assessment engine that takes a holistic view of an individual's financial life through custom consultations and personalized debt strategies. SteadyWise pairs individuals with its team of debt relief specialists who work closely with people to analyze their debt profile, income, expenses, and financial goals. From there, the specialists map out debt relief options that make sense for the individual and their unique needs. Whether it is reducing interest rates, shortening payoff timelines, or lowering the monthly payments, the program identifies the best way for people to get rid of fast – and fits into their lifestyle and goals. To match people with the right financial solution, SteadyWise's debt relief program has five simple steps. In step one, individuals are prompted to submit their application, which helps them connect with a certified debt consultant to review their financial profile. After reviewing, the consultant recommends either a consolidation strategy, non-profit debt management plan, or other structured debt relief solutions. In step two, individuals work with the consultant to review their options and tailor a debt relief plan that will help them consolidate their debt in line with their lifestyle and financial goals. In step 3, SteadyWise consultants guide individuals as they choose a plan of action, and in step 4, they begin tracking their progress. SteadyWise provides access to an online dashboard where people can monitor their progress. The last step to the SteadyWise debt relief program is for individuals to become debt-free and regain control of their financial journey. Unlike many debt relief services, SteadyWise is built around personalization and flexibility. The company works with a network of trusted partners, from non-profit credit counselors to accredited lenders, to ensure users get the best-fit debt relief option for their situation rather than the most profitable one. Through this approach, SteadyWise has established itself as a standout debt relief company and has helped many individuals and families start their journey to financial freedom. In addition to the debt relief program, SteadyWise provides financial education by demystifying debt relief. Elige shared that the lack of understanding around the subject has contributed to the confusion and frustration many Americans feel. SteadyWise, through its website, blog, program, and social media pages, seeks to clarify what debt relief really is, expose the red flags that many miss, and educate people on the debt relief options available to them, including debt relief/settlement, debt management plans, and personal loans. SteadyWise is built on the belief that debt relief should be accessible, understandable, and customized. The company is filling a critical gap in the market by offering context that guides people to solutions tailored to their real-life needs. SteadyWise's debt relief program is now available at 'Whether you are overwhelmed by debt or just unsure of your options, our program provides the bridge between where you are and where you want to be,' concluded Elige. Media Contact Company Name: SteadyWise Contact Person: Elige Carter Email: Send Email Country: United States Website:
CTV News
4 hours ago
- CTV News
CTV National News: Summer camps takes precautions against measles
Watch Parents are being told to check their children's measles vaccination status as summer camps hope to prevent cases. Allison Hurst reports.
