Bigbear.ai Up 17% in a Month: Should You Buy, Hold or Sell the Stock?
Bigbear.ai‘s BBAI shares have increased 17.3% in the past month against the Zacks Computer & Technology sector’s decline of 2.2% and the Zacks Computers - IT Services industry’s rise of 3.5%.
The uptick can be attributed to BBAI’s expanding product portfolio and its strong network of partners, which continue to drive its growth.
The positive momentum is further supported by BigBear’s ability to capitalize on the growing government investment in AI solutions. The increasing government interest bolsters BigBear’s innovation pipeline and allows it to adapt and extend its capabilities to serve a larger market.
Nevertheless, investors should ask this question — is now the right time to invest in BBAI shares, given BigBear.ai’s expanding AI portfolio and strong partner base?
BigBear.ai Holdings, Inc. Price and Consensus
BigBear.ai Holdings, Inc. price-consensus-chart | BigBear.ai Holdings, Inc. Quote
Growing Clientele Boosts BBAI Shares Surge
BigBear.ai’s focus on expanding its product portfolio has helped it win corporate clients. Its products have been integrated into the solutions of Autodesk ADSK, Amazon AMZN and Palantir PLTR.
Autodesk integrated BBAI’s ProModel Discrete Event Simulator with the AutoCAD platform to simplify the simulation of complex systems within AutoCAD.
AMZN’s Amazon Web Services (“AWS”) integrated BBAI’s ProModel solution to build AWS ProServe that enabled it to provide AI-driven warehousing.
Palantir integrated BBAI’s Observe, Orient and Dominate products into its Foundry platform to simplify data collection, generate insights and deliver intelligence. Autodesk, Amazon and Palantir are the undisputed leaders of the industry. The adoption of BBAI’s products by these giants reflects the quality assurance of its product suite.
In August, BigBear.ai announced a master service agreement with Heathrow to develop advanced AI technologies aimed at enhancing security, operational efficiency and traveler experience at Europe’s largest airport. This agreement highlights BigBear.ai’s commitment to applying its advanced solutions to critical infrastructure.
In second-quarter 2024, BigBear.ai also expanded its partnership with Dallas Fort Worth International Airport (DFW) by deploying its VeriScan technology with the Terminal Experience team, enhancing passenger processing for US CBP and significantly reducing processing times for returning US citizens.
The company has been consistently enhancing its portfolio in organic as well as inorganically ways. Earlier in 2024, it enhanced its AI portfolio by acquiring Pangiam Intermediate Holdings, which offers Vision AI for the trade, travel and digital identity market.
BBAI’s 2024 Outlook Looks Dull
BigBear.ai is emerging as one of the leaders in the AI space and major companies are adopting its products. However, challenging macroeconomic conditions and losses from the Virgin Orbit bankruptcy are expected to impact the company’s top line.
For fiscal 2024, BBAI expects total revenues between $165 million and $180 million.
The Zacks Consensus Estimate for revenues is pegged at $172.36 million, indicating year-over-year growth of 11.08%.
The consensus mark for fiscal 2024 earnings is pegged at a loss of 79 cents per share, unchanged in the past 30 days.
BBAI Stock – Buy, Sell or Hold?
BBAI stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
Bigbear.ai currently carries Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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