BigBear.ai has an attractive valuation, but is that enough to support buying the stock right now?

The story of the stock market these days is arguably Palantir Technologies , which was the best-performing stock in the S&P 500 in 2024 and is looking to repeat that success this year. Palantir is capitalizing on the rise of artificial intelligence (AI) to bring AI-powered solutions to its government contracts, and is rapidly expanding in the commercial space as well.

While Palantir is a massive success story , it's not the only AI company working in the government space. BigBear.ai ( BBAI -1.74% ) is much smaller than Palantir and its stock is up 20% so far this year. However, BigBear.ai stock took a beating after the company's second-quarter earnings report and is down 28%

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