10 Cheap New Stocks To Buy Right Now

5. Amentum Holdings Inc. (NYSE:AMTM)

Number of Hedge Fund Holders: 28

Forward P/E ratio as of January 25: 10.28

Market Capitalization: $5.25 billion

Amentum Holdings Inc. (NYSE:AMTM) provides engineering and technology solutions and serves critical sectors like energy, space, and defense. It addresses challenges in science, security, and sustainability across diverse markets.

Its Digital Solutions segment uses AI, data analytics, and cybersecurity to fulfill the demand for digital transformation across different sectors. The company’s continued R&D investments, expansion into new markets like AI/ML/IoT, and partnerships with other firms will drive further growth. For instance, the company has been awarded a contract by the Satellite Applications Catapult to design and deliver a gravity offload system for simulating space conditions in the UK, as of January 21. This system will enable satellite manufacturers to test and develop in-space servicing and assembly technologies, which will enhance mission safety and contribute to the growth of the UK’s space sector.

The company focuses on developing customer-centric solutions to capitalize on growing demand driven by factors like remote work, e-commerce, and the increasing need for enhanced cybersecurity. Amentum Holdings Inc.’s (NYSE:AMTM) $45 billion backlog also provides a solid foundation for future growth in the Digital Solutions segment. The company received a Hold rating and a $24 price target from RBC Capital analyst Kenneth Herbert on January 10.

Aristotle Small Cap Equity Strategy maintains its position in the company believing that it is positioned to capitalize on government spending in key areas and also achieve significant through its recent merger. The firm stated the following in its Q4 2024 investor letter:

“Amentum Holdings, Inc. (NYSE:AMTM), is a global engineering and technology solutions provider serving the US government agencies as well as international government agencies from allied nations. The company was formed by spin-off and merger of Jacobs Solutions’ (J) Critical Mission Solutions (CMS) and Cyber & Intelligence (CI) businesses with Amentum Holdings (private). As a result, existing J shareholders received shares of the newly formed combined company (AMTM). We maintained our position in AMTM as we believe the company is well positioned to benefit from government spending on digital modernization, cybersecurity and next generation technologies. The combination of the two companies exposes AMTM to new end market and geographic opportunities as well as operating scale efficiencies to drive incremental shareholder value.”