Palantir has emerged as a major focus for investors, reaching a market cap of $422.5 billion and surpassing companies like Coca-Cola and Bank of America. The valuation is extremely high relative to peers, with a trailing P/E ratio over 546x and trading at nearly 70x forward revenue. Markets are pricing in flawless execution on their AI platforms and government contracts to justify these levels. While the stock is up over 130% in the last year, Zacks suggests that traditional defense stocks like Lockheed Martin and RTX might offer safer exposure. LMT trades at roughly 16x earnings and RTX at 28x, offering more grounded valuations compared to PLTR's current premium.