Here’s Why BigBear.ai Holdings, Inc. (BBAI) Is Skyrocketing

We recently compiled a list of the Why These 24 Stocks Are Skyrocketing. In this article, we are going to take a look at where BigBear.ai Holdings, Inc. (NYSE:BBAI) stands against the other stocks.

One of the strongest stock market anomalies is the momentum effect, which is the tendency of recent past winners to outperform the recent past losers. That’s why we decided to take a look at some of the recent past winners in this article. These 24 companies, predominantly involved in the quantum computing, biotechnology, and technology sectors, have performed significantly well in the final quarter of 2024, registering spectacular returns over the 3 months.

That said, let’s take a look at the top 24 stocks that have skyrocketed and pose a solid growth opportunity in the coming year. We will also explore how well the stocks have performed throughout the year and what they have in store for 2025.

To come up with 24 names, we considered only the stocks that have at least $2 billion in market capitalization and have registered commendable returns in the fourth quarter of 2024.

A closeup of a computer server rack surrounded by a CAT5 network of cables.

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

Q4 Returns as of December 31, 2024: 205%

BigBear.ai Inc (NYSE:BBAI), the IT service management company, returned almost 205% in the fourth quarter of 2024, with its share price growing from $1.46 apiece on September 30 to $4.45 on December 31, 2024.

The surge in BBAI’s stock price underscores investor optimism about the company’s growth potential in developing AI-backed decision-making solutions for the defense and national security industries.

The emerging leader in AI-backed decision solutions was recently awarded a contract worth a staggering $165 million to deliver the US Army’s Global Force Information Management system: Objective Environment (GFIM-OE). In addition to that, BBAI also saw a 22.1% year-over-year increase in revenue in the third quarter of 2024.

Overall BBAI ranks 17th on our list of the stocks that are skyrocketing right now. While we acknowledge the potential of BBAI as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.