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Palantir Stock And 2 Low Risk Picks Backed By Strong Balance Sheets

Simply Wall St · 2d ago

Markets are sending mixed signals right now, with softer inflation readings, uneven housing data and shifting global bond flows all pulling your portfolio in different directions. When headlines are noisy, low risk leaders with strong balance sheets can help you stay invested without leaning on guesswork about the next macro swing. Our Low-Risk Leaders screener focuses on companies that our model scores as having the lowest risk profiles, so you can concentrate on resilient businesses instead of chasing the latest story. In this article, you will see 3 of the stocks highlighted from this screener.

Alcoa (AA)

Overview: Alcoa is a global aluminum producer that mines bauxite, refines it into alumina, and turns it into primary aluminum products used across transportation, construction, packaging, power, and other industrial markets, while also selling electricity into wholesale energy markets.

Operations: Alcoa generates about US$5.1b from its Alumina segment and US$10.4b from Aluminum, with a small corporate contribution and intersegment eliminations reducing the consolidated total.

Market Cap: US$11.6b

Alcoa provides exposure to a core industrial material tied to themes such as decarbonization and electrification, while also screening as a relatively low risk leader supported by solid profitability and a long operating history. The company is reporting higher net margins at 9.4% and high quality earnings. Its P/E is below industry and peer averages and its share price is well under some cash flow based fair value estimates, which has attracted attention from analysts and investors. At the same time, production issues in Western Australia, tariff uncertainty, and slower revenue growth expectations contribute to ongoing risk. The interaction of these factors with potential benefits from the South32 acquisition and low carbon products is a key focus for understanding Alcoa at this stage.

Alcoa’s combination of higher net margins, below peer P/E and cash flow based valuation signals suggests the market may be missing something in the core story. Start with the DCF valuation analysis for Alcoa and see what the numbers imply about the next twist.

AA Discounted Cash Flow as at Jul 2026
AA Discounted Cash Flow as at Jul 2026

Vertiv Holdings Co (VRT)

Overview: Vertiv Holdings Co builds the power, cooling, and critical infrastructure that keeps data centers and communication networks running, including the high density facilities needed for AI, cloud computing, and online services. Its hardware, software, and life cycle services support customers globally across data intensive industries from e commerce and online banking to gaming and wireless communications.

Operations: Vertiv generates most of its revenue in the Americas at about US$7.0b, with meaningful contributions from Asia Pacific at roughly US$2.4b and Europe, Middle East & Africa at about US$2.3b, partly offset by around US$1.0b of intersegment sales.

Market Cap: US$111.2b

Vertiv sits at the heart of the AI buildout, supplying liquid cooling and power systems that many next generation data centers cannot operate without, backed by around US$15b in backlog and revenue of US$10.2b in FY2025. Earnings growth has been strong, margins and return on equity are high, and recent guidance updates and analyst coverage indicate ongoing interest in the stock. At the same time, the valuation is rich, the business leans on external borrowing, and a large share of demand is tied to a small group of hyperscale customers, so execution and capex cycles matter. For investors willing to weigh those risks, Vertiv provides targeted exposure to critical AI infrastructure.

Vertiv’s surge into AI infrastructure is impressive, but the real question is whether current pricing fully reflects the earnings power behind that US$15b backlog. Compare today’s hype with the analyst forecasts for Vertiv Holdings Co to see what expectations might be missing.

NYSE:VRT Earnings & Revenue Growth as at Jul 2026
NYSE:VRT Earnings & Revenue Growth as at Jul 2026

Palantir Technologies (PLTR)

Overview: Palantir Technologies builds software platforms that help governments and companies bring together vast amounts of data, analyze it, and turn it into decisions, from counterterrorism and defense operations to insurance underwriting, logistics, and industrial workflows. Its Gotham, Foundry, Apollo, and Artificial Intelligence Platform products sit on top of existing systems so users can run AI models and mission critical applications across secure, on premise, cloud, and hybrid environments.

Operations: Palantir generates about US$2.8b from Government customers and roughly US$2.5b from Commercial clients, with the United States contributing around US$4.0b, the United Kingdom about US$0.5b, and the rest of the world close to US$0.8b.

Market Cap: US$317.4b

Palantir interests investors looking for AI exposure backed by real contracts, pairing government programs like the U.S. Army’s NG C2 data backbone with fast growing commercial wins in insurance, manufacturing, and logistics. Earnings growth has been very large, net margins sit around 43.7%, and ROE near 26.8% with forecasts close to 29.8%, all supported by zero debt and significant cash. At the same time, a very high P/E multiple and reliance on external funding make the stock sensitive to shifts in growth expectations and funding costs. The NVIDIA and sovereign AI partnerships, together with the push to make its AI Platform a default operating layer for large enterprises, are key elements for long term investors who can weigh those trade offs carefully.

Palantir’s earnings surge, strong margins and zero debt suggest the story is still forming, yet the valuation debate keeps circling the same points. Go straight to the analyst forecasts for Palantir Technologies and see what the market might be missing.

NasdaqGS:PLTR Earnings & Revenue Growth as at Jul 2026
NasdaqGS:PLTR Earnings & Revenue Growth as at Jul 2026

The three stocks in this article are just a starting point. Our full Low-Risk Leaders screener surfaces 79 more companies that share similarly compelling balance sheets, risk scores, and business narratives inside the Low-Risk Leaders screener. Use Simply Wall St to filter, identify, and analyze the specific catalysts, balance sheet traits, and earnings narratives that matter to you so you can focus on your highest conviction plays.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.