BigBear.ai: The Underrated AI Stock to Watch in 2025
Discover why BigBear.ai, with its diverse AI solutions and attractive valuation, could outperform Palantir. Learn why now.
Key Takeaways
- BigBear.ai's diverse AI solutions cater to both government and commercial sectors, reducing dependency on volatile government contracts.
- Despite slower initial growth, BigBear.ai's revenue backlog and strategic acquisitions point to accelerating future performance.
- Trading at a fraction of Palantir's valuation, BigBear.ai offers a more attractive entry point for investors.
- The company's focus on international expansion and cross-selling opportunities positions it for long-term growth.
BigBear.ai: A Hidden Gem in the AI Landscape
While Palantir Technologies (NASDAQ: PLTR) has been the darling of the AI market, doubling its stock price in 2025, a closer look at BigBear.ai Holdings (NYSE: BBAI) reveals a more compelling investment opportunity. Despite a more modest 66% surge in its stock, BigBear.ai is trading at a significantly lower valuation, making it a compelling alternative for investors seeking undervalued AI stocks.
Diversified AI Solutions for Stability and Growth
BigBear.ai provides AI, machine learning, and predictive analytics solutions to a wide range of customers, including U.S. government agencies and commercial entities. This diversification is a key strength, reducing the company's reliance on government contracts and mitigating the risks associated with government budget fluctuations. The company's solutions are applied in critical areas such as defense, intelligence, border protection, transportation, manufacturing, travel, and supply chain management.
Strategic Acquisitions for Expansion
One of BigBear.ai's most significant moves was the acquisition of Pangiam, a provider of vision-based AI solutions. This acquisition has bolstered BigBear.ai's offerings in border security, travel, trade, and supply chain management. Pangiam's technology has also enabled BigBear.ai to expand internationally and enhance its customer base, opening up new revenue streams and growth opportunities.
Revenue Backlog and Growth Projections
Despite its slower initial growth, BigBear.ai's revenue backlog has increased by 30% year over year to $385 million, well above its revenue growth rate. This strong backlog is a positive indicator of future performance, and analysts predict double-digit revenue growth for the company in 2026. The company's focus on diversifying its customer base and increasing cross-selling opportunities further supports this optimistic outlook.
Cross-Selling and International Expansion
BigBear.ai is actively working to increase its cross-selling opportunities, leveraging its expanded service offerings to existing customers. The acquisition of Pangiam has been instrumental in this strategy, providing the company with additional tools to enhance its value proposition. Additionally, the company's international expansion efforts are poised to drive further growth, tapping into global markets and expanding its reach.
The Bottom Line
While Palantir Technologies has dominated the headlines, BigBear.ai offers a more balanced and attractive investment opportunity. With its diversified AI solutions, strategic acquisitions, and strong revenue backlog, BigBear.ai is well-positioned for accelerated growth in the coming years. For investors seeking a more reasonably valued AI stock, BigBear.ai is a hidden gem worth considering.
Frequently Asked Questions
What sectors does BigBear.ai primarily serve with its AI solutions?
BigBear.ai serves both U.S. government agencies and commercial customers in sectors such as defense, intelligence, border protection, transportation, manufacturing, travel, and supply chain management.
How has the acquisition of Pangiam benefited BigBear.ai?
The acquisition of Pangiam has expanded BigBear.ai's offerings in border security, travel, trade, and supply chain management, enabling international expansion and enhancing its customer base.
What is BigBear.ai's current revenue backlog and why is it significant?
BigBear.ai's revenue backlog has increased by 30% year over year to $385 million, indicating strong future performance and providing a buffer against market volatility.
How does BigBear.ai plan to increase its cross-selling opportunities?
BigBear.ai plans to increase cross-selling opportunities by leveraging its expanded service offerings to existing customers, particularly through the addition of Pangiam's vision-based AI solutions.
What is the projected revenue growth for BigBear.ai in the coming years?
Analysts predict double-digit revenue growth for BigBear.ai in 2026, driven by its strong revenue backlog, diversification strategy, and international expansion efforts.
