BigBear.ai's stock price has surged due to defense wins and potential in AI technology.

BigBear.ai’s stock price has tripled in the last year, despite slow revenue growth. With a new CEO, defense wins, and a healthy backlog, the company has potential, but needs to prove its execution capabilities. Shares surged 420% over the past 12 months, outperforming the market.

BigBear.ai provides AI-driven software for data analysis, with revenue from government contracts and other sectors. The stock has risen 140% in the last three months, despite lackluster results. The company’s positioning in AI and defense tech could attract investors.

Although BigBear.ai isn’t profitable, it showed improvement in Q1, cutting net losses and reducing debt. However, SG&A expenses outpaced revenue growth significantly. The company reported a $7 million adjusted EBITDA loss due to increased spending and underutilized resources.

CEO Kevin McAleenan, with experience in Homeland Security, is a key reason to consider investing. The company focuses on border security, defense, and infrastructure. BigBear.ai secured a $13.2 million contract with the Department of Defense and has a $385 million backlog.

Compared to Palantir and C3.ai, BigBear.ai trades at a lower valuation, with potential for growth in the government tech sector. The company’s stock is speculative due to lackluster growth and losses. Investors should monitor its performance before investing.

The Motley Fool’s Stock Advisor team didn’t include BigBear.ai in their top 10 stock picks. Past recommendations like Netflix and Nvidia saw significant returns. Stock Advisor has outperformed the S&P 500 with a 1,060% average return. Consider joining Stock Advisor for the latest top picks.

Read more at Yahoo Finance: Is BigBear.ai a Buy?