As the stock market weathers a short-term correction, savvy investors can still find promising opportunities for long-term gains.
While the market ended the last session mainly in the green, lingering bearish sentiment has weighed on several stocks, pushing their prices lower.
However, this downturn presents a chance to buy quality stocks at a discount. Below are two standout opportunities worth considering.
Picks for you
Palantir (NASDAQ: PLTR)
After a meteoric rise that saw the American software giant hit highs above $120, Palantir (NASDAQ: PLTR) has experienced a sharp correction.
The stock has been a favorite among investors due to its inroads into the artificial intelligence (AI) sector. Commercial and government entities are leveraging its products, such as the Artificial Intelligence Platform (AIP).
Despite a recent pullback amid broader market concerns, Palantir’s fundamentals remain strong. For instance, for the quarter ending December 2024, the technology company reported a 36% year-over-year revenue increase, reaching $827.52 million.
The government segment, which accounts for nearly 60% of its revenue, continues to thrive with contracts from U.S. defense agencies. Meanwhile, its commercial business remains crucial as businesses seek AI solutions to boost efficiency. Palantir’s inclusion in the S&P 500 has also broadened its appeal to institutional investors.
However, PLTR isn’t without risks. Chief among them is the company’s valuation, which some analysts maintain is stretched. For instance, experts at Jefferies foresee a potential drop to $60.
Yet, with a projected revenue pipeline suggesting accelerating growth into 2025, Palantir could justify its premium for investors betting on the long-term AI boom.
It’s worth noting that part of the stock’s recent drop has been fueled by concerns about a possible reduction in defense spending, a move that might impact Palantir, given its strong government contracts.
However, as things stand, these contracts remain on course with no signals of cancellations, potentially strengthening the company’s revenue pipeline.
At the same time, Plantir’s insider selling activity has also raised concerns about the stock’s short-term outlook, but it remains legal.
By press time, PLTR was trading at $84.90, ending the last session up a modest 0.16%. On the weekly chart, the equity is down 11%, but PLTR remains in the green year-to-date, up 13%.
Rivian (NASDAQ: RIVN)
On the other hand, Rivian (NASDAQ: RIVN), known for its R1T electric pickup and R1S SUV, has faced headwinds in 2025, with its stock struggling.
Part of the company’s troubles stems from stiff competition from established electric vehicle (EV) manufacturers such as Tesla (NASDAQ: TSLA). At the same time, with the new Donald Trump administration, there is speculation that his government might not be friendly to the EV sector, potentially rolling back some incentives for the industry.
However, Rivian’s potential lies in its strong partnerships with entities such as Amazon, its largest shareholder, which has ordered 100,000 electric delivery vans to decarbonize its fleet.
In late 2024, Rivian announced plans to expand van sales to other commercial clients, which could diversify its revenue beyond its consumer-focused truck and SUV lines.
Additionally, the company has a $5.8 billion joint venture with Volkswagen to develop EV architectures and software.
Meanwhile, Rivian’s delivery numbers are gaining traction. In Q4 2024, the EV maker delivered 14,183 vehicles, surpassing the estimated 13,500. Rivian delivered 51,579 vehicles for the full year, slightly ahead of 2023.
At the time of reporting, RIVN’s share price was valued at $11.84, gaining over 2% at the close of the last trading session. During the weekly timeframe, the equity was down 5%. In the meantime, reclaiming the $20 level remains among Rivian’s stock targets for 2025.
Palantir and Rivian offer strong growth potential, but their success hinges on solid fundamentals and a broader market recovery. Long-term investors may find value, but short-term volatility remains a key factor.
Featured image via Shutterstock
