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Palantir (NASDAQ:PLTR) is not off to a wonderful start this year. The stock looks stuck in the $170 range and may even decline from here if investors continue focusing on value. Sure, the business is top-notch, and management has been highly disciplined. But should you pay 65 times forward sales for that and keep paying more? The market doesn’t seem to agree.
PLTR stock is now below where it was in August 2025. Unless earnings rise fast enough to make it seem cheap, it is unlikely to hand you a triple-digit rally this year. Earnings would have to double several times over to make Palantir as “cheap” as Nvidia (NASDAQ:NVDA) from here.
So, where should you look if you want explosive gains?
I’d say look where no one else is looking. Frequency Electronics (NASDAQ:FEIM) is among the 3 stocks I pointed out back in August 2025. Two of the 3 have gained >150% in the past 6 months, with the third gaining almost 30%.
FEIM is the one I am pretty confident has the momentum to keep delivering multibagger returns, and I’ll outline why.
Its customers will only increase, and so will the demand
This company makes precision time and frequency control products for microwave applications. These products are needed for space, defense, data centers, and telecommunications. All of these sectors are seeing explosive demand for various reasons, and the demand is here to stay.
Half of the company’s sales come from indirect exposure to U.S. government spending. Defense contractors like Lockheed Martin (NYSE:LMT) and Northrop Grumman (NYSE:NOC) need specialized products for military applications, and this is one of the only companies that can do it reliably. Despite the rapid growth over the past few months, the market cap is still $573 million.
I see plenty of growth coming from the Golden Dome missile defense program. Timing is critical for such a system, and Frequency Electronics already has experience making products for space. It will require $161-831 billion over the next 20 years, with some estimates stretching into the trillions. For 2026, the NDAA authorizes $900.6 billion total defense spending, with House proposals adding billions for Golden Dome.
Alongside this, there’s more demand from commercial space companies who are already in a space race among themselves.
Frequency Electronics is seeing accelerating growth
For fiscal 2025, Frequency Electronics reported 26.3% revenue growth to $69.81 million. This is expected to slow down to 3.23% in FY 2026 before accelerating again to 16.9% in FY 2027 and continuing to accelerate from there.
This is mainly due to the company adding more customers. Backlog reached $82 million on October 31, 2025. It is plausibly over $100 million already.
You’re paying less than 50 times forward earnings. While this would be expensive for a big tech or hardware company, it is quite a discount for an up-and-coming electronics company with growing orders. Wall Street is yet to notice the potential here, let alone fully price it.
I expect the company to cross a $1 billion valuation this year, as its aerospace, defense, and space customers are not slowing down.
Are Palantir-esque gains around the corner?
The stock has already delivered multibagger returns for its shareholders, but it may be just starting. Frequency Electronics has the potential to become a multi-billion-dollar business in the coming years.
It’s not an AI pure-play by any means, and it is quite different from Palantir, as it does not deal with software. However, it has government-linked clients with contracts that are likely to prove to be sticky and highly scalable as the space economy grows. Moreover, the telecom-space industry is just getting started. Companies like AST SpaceMobile (NASDAQ:ASTS) are making satellite-based 5G come true, with Amazon’s (NASDAQ:AMZN) Project Kuiper doing the same.
The ceiling for growth is above and beyond what many analysts expect. 2019 saw 102 orbital launches, and 2025 more than tripled that amount with 324 launches. It may not be long until Frequency Electronics reports 50%-plus revenue growth once the Golden Dome program plus space-based telecom begins in full swing.