1 Stock to Buy, 1 Stock to Sell This Week: Palantir, Walt Disney

U.S. jobs report, ISM PMI survey, and more AI-linked tech earnings will be in focus this week.
Palantir is poised to deliver eye‑popping growth as demand for its AI‑driven platforms surges.
Disney faces headwinds as investors scrutinize streaming profitability and park trends.

U.S. stocks ended higher on Friday, with the and the Nasdaq reaching new record peaks as investors assessed signs of progress in U.S.-Iran ceasefire talks, while a surge in Apple shares added further support.

Source: Investing.com

For the week, the S&P ended up 0.9%, while the Nasdaq and the small-cap rose 1.1% and 0.9% respectively. The recorded a gain of about 0.5% for the period.

More volatility could be in store in the week ahead as investors assess the outlook for the economy, inflation, interest rates and corporate earnings amid the ongoing conflict with Iran.

Most important on the economic calendar will be Friday’s U.S. employment report for April, which is forecast to show the economy added 73,000 positions. The unemployment rate is seen holding steady at 4.3%. Ahead of the jobs report, the ISM services PMI will also be closely watched.

Source: Investing.com

That will be accompanied by a heavy slate of Fed speakers, including district governors Chris Waller, John Williams, Michelle Bowman, Beth Hammack, Mary Daly and Alberto Musalem all set to make public appearances.

Elsewhere, earnings season continues apace, with more than 100 companies in the S&P 500 set to post results this week. These include reports from Advanced Micro Devices, , CoreWeave, ARM, , McDonald’s, and Uber. They will be joined by other notable companies like Shopify, PayPal, Coinbase, Pfizer, and Arista Networks.

Source: Investing.com

Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, May 4 – Friday, May 8.

Stock To Buy: Palantir 

Palantir stands out as the clear buy heading into its Q1 2026 earnings release after the market close on Monday. The data analytics and artificial intelligence platform company is demonstrating explosive growth driven by its Artificial Intelligence Platform (AIP) and rapid commercial adoption.

In a sign of increasing optimism, analysts have made several upward revisions to their earnings forecasts in the weeks leading up to the print. Notably, all 18 of the last revisions were made to the upside. The expected move in the options market post-earnings is around +/-9.5% up or down.

Source: InvestingPro

Analysts project adjusted EPS of $0.28, representing a 115% increase year-over-year, alongside revenue of approximately $1.54 billion, up 74% annually. U.S. commercial and government revenue are both forecast to jump over 60%, reflecting surging demand for Palantir’s AI-driven solutions.

Despite a roughly 20% stock pullback in 2026 amid sector rotation, Palantir has a strong track record of beating expectations and raising guidance. Possible chatter about a stock split will be of special interest.

With Wall Street maintaining a Moderate Buy consensus and average price targets around $192, a strong earnings beat and positive commentary on backlog and AIP momentum could trigger a sharp rebound.

Source: Investing.com

Palantir is trading inside a well-defined range, supported by the SuperTrend and Ichimoku Kijun at $139.48–$140. Recent bullish momentum is visible in the MACD, but the stock is still making lower highs since the November peak.

Unless PLTR’s earnings wildly disappoint, the setup is ripe for a positive surprise and potentially a momentum-driven rally.

Trade Setup:

Entry: ~$144.10
Exit Target: $164.30 (gain +14%)
Stop-Loss: $139.00 (risk -3.6%)

Stock to Sell: Disney

In contrast, Disney represents the stock to sell or short ahead of its Q2 fiscal 2026 earnings, expected Wednesday morning before the opening bell. While the entertainment powerhouse benefits from diversified assets including streaming, theme parks, and content, it faces moderate growth prospects and near-term headwinds.

Analysts have grown increasingly cautious on DIS ahead of the print, with all 19 of the last revisions being made to the downside. The options market is pricing in a potential move of +/-5.1% for shares post-earnings.

Source: InvestingPro

Consensus estimates call for EPS of $1.49, rising 3.4% from the year-ago period. Meanwhile, revenue is forecast to rise 5.1% year-over-year to $24.84 billion.

Perhaps of greater importance, investors will zero in on three interlocking themes: streaming profitability, theme park performance, and the impact of macro/geopolitics on discretionary spending.

The Burbank, California-based entertainment conglomerate is likely to provide cautious forward guidance, reflecting the challenges in its Disney+ streaming business and the uncertain geopolitical environment impacting its theme parks.

Source: Investing.com

Disney recently bounced out of a V-bottom at $92.18, but the rally is now stalling. The longer-term trend is still bearish, with the 150-day moving average ($109.65) and a heavy volume resistance zone at $111.82 pressuring from above.

Given that setup, Disney looks more like a sell or underweight into this week’s report for shorter‑term traders and cautious investors.

Trade Setup:

Entry: ~$103.00
Exit Target: $95.00 (gain +7.7%)
Stop-Loss: $107.10 (risk -4%)

Disclosure: This is not financial advice. Always conduct your own research. 

At the time of writing, I am long on the S&P 500, and the via the , and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials. 

The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.

Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.