Planet Labs (PL) shares have declined by 11.9% over the past three months, significantly underperforming both its industry and the S&P 500. The company, a key player in Earth-imaging data and geospatial analytics, operates the world’s largest fleet of Earth-observation satellites. Despite facing challenges, it reported a 72% year-over-year increase in backlog, exceeding $906 million, which supports its projected fiscal 2027 revenue of $425-$441 million.
Currently, Planet Labs trades at a price-to-sales ratio of 22.76, considerably higher than the industry average of 3.15. Analysts project a 41.9% increase in fiscal 2027 revenues; however, earnings are expected to decline by 75%. Overall, despite growth potential driven by increasing government and defense contracts, analysts advise caution given its current high valuation and ongoing losses, maintaining a Zacks Rank of #4 (Sell).
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