These Are the Stocks to Watch Monday Night

Stocks started the new week on a high note on Monday, with gains of more than 1% for the Dow Jones Industrial Average (^DJI 0.69%), S&P 500 (^GSPC 1.20%), and Nasdaq Composite (^IXIC 1.59%). Investors are hoping that the release of the Consumer Price Index for January will show that the trend toward lower price increases will continue, since that could prompt the Federal Reserve to slow its pace of interest rate hikes and help the economy avoid a prolonged downturn.

Data source: Yahoo! Finance.

After the market closed, a couple of well-known companies reported their latest financial results, and shareholders generally liked what they saw. As a result, shares of Palantir Technologies (PLTR 3.19%) and Avis Budget Group (CAR 0.52%) moved sharply higher in after-hours trading Monday evening. Below, you'll get the early scoop on what happened with these two companies and why their shares could keep soaring come Tuesday.

Palantir makes a profit

Shares of Palantir Technologies climbed 15% in after-hours trading late Monday. The data analytics specialist reached a big milestone in its business, and that has investors feeling more confident about the stock's prospects.

Palantir's fiscal first-quarter financial results for the period ending Dec. 31 were noteworthy because the company earned its first profit on an unadjusted basis. Revenue climbed 18% year over year to $509 million, and Palantir posted net income of $31 million, working out to $0.01 per share. After accounting for various items, Palantir's adjusted net income came in at $96 million, or $0.04 per share.

Palantir saw strength in different parts of its business. The data-analytics platform provider is arguably known best for its dealings with government agencies, and revenue from government work climbed at a faster 23% pace for the period.

Yet even though commercial sales grew only 11% year over year, the company still got more than 40% of its revenue from the commercial side, and that shows that Palantir is doing a good job of diversifying its business and showing its value to clients of all kinds.

Palantir generated a lot of hype in its late 2020 initial public offering, and even with its latest gains, the stock is still down 75% from its highs. Nevertheless, if the company can stay profitable, it'll give shareholders even more confidence about its prospects.

Avis Budget drives forward

Meanwhile, shares of Avis Budget Group rose 5% in after-hours trading on Monday. The rental car company's fourth-quarter financial results showed continued success in an environment in which many investors anticipate a pullback from unprecedented profits in the recent past.

Avis Budget kept the pedal to the metal during the last part of 2022. Revenue of $2.77 billion was up 8% year over year, while adjusted net income climbed 7% to $438 million. However, because of a massive stock repurchase program that dramatically cut the number of shares outstanding, adjusted earnings per share surged 48% to $10.46.

The full-year 2022 numbers for Avis were just as impressive. Sales of $11.99 billion climbed 29% from 2021, and adjusted earnings weighed in at a whopping $58.05 per share. The international segment showed more growth than its home Americas segment, but the company was firing on all cylinders.

No one seems to think Avis can keep up the pace in 2023, as consensus forecasts for earnings are just half the rental car company's final 2022 numbers. Yet the pandemic revealed valuable insights for Avis Budget, and that could continue to pay off for shareholders over the long haul.