We recently compiled a list of the 12 Best Most Active Stocks to Buy Now. In this article, we are going to take a look at where BigBear.ai Holdings, Inc. (NYSE:BBAI) stands against the other active stocks.
Active investing involves the continuous buying and selling of stocks, aiming to outperform the market through strategic decisions based on market conditions, company performance, and economic indicators. This approach contrasts with passive investing, which typically involves holding a diversified portfolio over the long term. Engaging in active stock investment offers several potential benefits for investors, including the possibility of higher returns, effective risk management, and the ability to capitalize on short-term market opportunities. Active investors strive to exceed average market returns by identifying and investing in stocks poised for significant growth. Historical data supports the potential of this approach. For instance, a podcast highlighted by the Financial Times reveals that certain companies have delivered extraordinary long-term returns. Altria Group, formerly known as Philip Morris, achieved a staggering 265 million percent return over a century. Similarly, Vulcan Materials and Kansas City Southern provided returns of 39 million percent and 36 million percent, respectively.
READ MORE ABOUT THESE DEVELOPMENTS BY ACCESSING 10 Best AI Data Center Stocks AND 10 Buzzing AI Stocks According to Goldman Sachs.
Active investing allows for dynamic risk management by enabling investors to adjust their portfolios in response to changing market conditions. This flexibility is particularly advantageous during periods of market volatility or economic downturns. For example, during the 2008 financial crisis, active investors had the opportunity to reduce exposure to the financial sector, potentially mitigating losses. By continuously monitoring investments and reallocating assets as needed, active investors can align their portfolios with their risk tolerance and market outlook. The stock market often presents short-term opportunities that active investors can exploit for profit. Strategies such as swing trading involve holding positions for a few days to a couple of weeks to benefit from expected price movements. This approach requires diligent analysis and timely decision-making but can lead to gains that passive strategies might miss.
READ MORE ABOUT THESE DEVELOPMENTS BY ACCESSING 30 Most Important AI Stocks According to BlackRock AND Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
We sifted through Yahoo Finance’s list of the most active stocks that are experiencing high trading volumes. We looked at the top 15 stocks to find the ones that were the most popular among elite hedge funds. We then narrowed down our list to the 12 stocks with high trading volumes and those that were the most popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A closeup of a computer server rack surrounded by a CAT5 network of cables.
BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 13
Average Volume: 71.89 million
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a provider of artificial intelligence (AI)-powered decision intelligence solutions for national security, supply chain management and digital identity. For the third quarter of 2024, the company’s revenue increased 22.1% to $41.5 million compared to $34 million for the third quarter of the previous year. In February, the company secured a contract from the Department of Defense (DoD) Chief Digital and Artificial Intelligence Office (CDAO). The contract aims to enhance the firm’s Virtual Anticipation Network (VANE) prototype, using custom AI models to help US defense officials analyze news from potential foreign adversaries. Ryan Legge, President of National Security at BigBear.ai, stated that by advancing VANE within CDAO, the firm is preparing warfighters with sophisticated intelligence capabilities to gather critical foreign insights.
Overall BBAI ranks 7th on our list of the most active stocks to buy now. While we acknowledge the potential of BBAI as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than BBAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
