Still stuck trading between $20 and $30 per share, it may seem like Palantir Technologies (NYSE:PLTR) is never bouncing back. But while returns with PLTR stock have been underwhelming over the past nine months, don’t get discouraged. Now is not the time to head for the exits.

Why? After its incredible run from $10 to as much as $45 per share between November 2020 and February 2021, the market may have decided it sent it up too far, too fast.

This more cautious view of Palantir is on full display now, with the stock moving back to the low-$20s per share after its recent quarterly earnings release. Despite beating on revenue, and upping its outlook, these solid results have been outweighed by a bearish analyst rating issued shortly after earnings.

However, as it continues to deliver growth at a break-neck pace, you can expect this data analytics and security play to eventually make it return to $45 per share, and beyond. There’s ample potential upside ahead for those who take a long-term approach with it.

PLTR Stock and Recent Earnings

For the quarter ending Sept. 30, Palantir again delivered solid results. Revenue surged 35.5% year-over-year, to $392.1 million. That was above analyst estimates calling for $386.6 million. Earnings-per-share (EPS) of 4 cents was in line with sell-side estimates. Along with beating on revenue, the company raised its guidance as well.

For the current quarter (ending Dec. 31), it expects to generate $418 million in revenue. This exceeds the $401.9 million forecasted by analysts. For the full year 2021, management expects sales of around $1.53 billion, or 40% above sales for the preceding year. Just like last quarter, you can chalk up much of the strong quarter results with PLTR stock to the growth acceleration seen with its commercial segment.

Palantir’s extensive business with the U.S. Federal Government may be the first thing that comes to mind when you hear this name. But while its contracts with civilian and military agencies remain a big part of the story here, it’s important how much progress it has made building up this part of its business.

Last quarter, its commercial sales grew a staggering 90% year-over-year. This quarter? Commercial sales grew even faster, soaring 103% year-over-year. But again, despite the positive takeaways from its latest results, this is being outweighed by the above-mentioned negative analyst rating. That said, while this may put pressure on shares for now, that’s not necessarily going to be the case permanently.

A Long-Term View Is the Best Approach With Palantir

On Nov. 10, RBC Capital’s Rishi Jaluria downgraded PLTR stock, lowering his price target from $25 per share to $19 per share. The sell side analyst’s rationale? Concerns about slowing growth in its governmental segment.

In addition, concerns about its commercial sales growth being bolstered by deals with scores of small companies that are going public via SPAC (special-purpose acquisition company) mergers that the company has been involved with, via PIPE (private investment in public equity) investments.

The market is following Jaluria’s lead, and “downgrading” the stock itself, explaining its recent slide. But the points made by the analyst in his report shouldn’t be seen as meaning “game over” for this growth story. Why? Palantir continues to lock down big contracts, and grow its book of business. For example, on the governmental side, its recent $823 million deal to provide data and analytics software to the U.S. Army.

In its commercial segment, the company may not break things down to a granular level. We do know that the list of companies that use its platforms continues to expand. Scores of major companies across all industries use Foundry for their data analytics needs. The same goes with financial institutions and its Metropolis platform.

The result? Palantir remained primed to deliver above-average (more than 30%) annual revenue growth. With or without the contracts from the small companies in which it has made investments. Yes, as it scales up, chances are its rate of revenue growth will slow some. But not to a level where’s going to start negatively affecting its valuation.

The Verdict

Trading sideways for nearly a year, if you’re holding Palantir in your portfolio, you may be getting impatient. That’s understandable, as other high-flying growth names continue to make new highs. Meanwhile, this one is struggling to return to its high water mark.

Even so, now’s not the time to give up on it. Wall Street may not be as excited about it now as it was earlier this year. But while currently out of favor, in the quarters ahead, as it demonstrates it’s still a growth story? The market will warm back up to it.

While upcoming results aren’t giving PLTR stock a boost, hold on tight to your position. As it continues to grow its commercial segment, it still has a good chance of re-hitting its past high, and making new highs, in the years ahead.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.