10 Best Performing IT Services Stocks to Buy According to Analysts

4. BigBear.ai Holdings Inc. (NYSE:BBAI)

YTD returns: 16%

Potential Upside: 45%

Number of Hedge Fund Holders: 13

BigBear.ai Holdings Inc. (NYSE:BBAI) specializes in edge AI-powered decision intelligence solutions, catering to national security, supply chain management, and digital identity applications.

The company’s share price doubled within a week starting February 4 after securing a contract from the Department of Defense (DoD) Chief Digital and Artificial Intelligence Office (CDAO). This contract aims to enhance BigBear.ai Holdings Inc. (NYSE:BBAI)’s Virtual Anticipation Network (VANE) prototype, designed to improve the assessment of news media originating from countries that may pose foreign threats. The contract win reinforced the company’s technological capabilities and strengthened its investment appeal.

Following this development, analysts at Cantor Fitzgerald raised their price target from $3.50 to $8, citing recent contract wins and strategic shifts that enhance the stock’s attractiveness.

Although the stock has since retraced much of its gains, bringing its year-to-date increase to 16% as of February 28, analysts remain optimistic about further upside. The consensus average price target currently stands at $7.50, suggesting a potential gain of 45%.