We recently published a list of 12 Best Stocks to Invest in for a Stock Market Game. In this article, we are going to take a look at where BigBear.ai Holdings, Inc. (NYSE:BBAI) stands against other stocks to invest in for a stock market game.
We all have heard the phrase ‘value isn’t always visible at first glance’ at least once in our lifetime and this isn’t something to overlook, particularly when you are playing the stock game. A small investment results in a big fortune, but only if you’re lucky or a contrarian genius.
In his ‘How To Start Investing in Stocks in 2025 and Beyond’ guide, Peter Gratton provides a list of 7 steps to lead the stock market game. When selecting stocks, it is pertinent to consider stocks with good track records or as he says,
“The greater the chances for outsized growth in a stock, the riskier investing in it will be. Beginners interested in growth stocks should target industries with long-term potential, such as technology or healthcare.”
The foundation of the preference of most of the stocks listed below is how deeply the company embraces AI. Since the last few years, everyone has been going on about AI, just as blockchain was once a buzzword. Research by IDC expects that AI could add around $20 trillion to the global economy by 2030. While Warren Buffett stays away from most of the technology stocks, simply because he doesn’t understand their business, he reports missing out on some golden stocks. Today, almost every investor owns a stock based on the company’s AI-related strategies.
Similarly, analyzing the global demand patterns can help in identifying highly valued sectors. A report by WHO reported that global healthcare spending reached an impressive $10.3 trillion in 2024 underscoring the demand for such a crucial sector. And when you integrate healthcare with the tech sector, that’s when you get another cutting-edge healthcare technology sector, that too is expected to lead the market in the years ahead.
Benjamin Graham, the father of value investing, stated:
“In the short run, the market is a voting machine, but in the long run, it is a weighing machine. Price is what you pay. Value is what you get. The intelligent investor is a realist who sells to optimists and buys from pessimists. The future is never clear, and you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long-term values.”
Thus, it is the long run when the true value of a stock is realized as the short run just focuses on the investors’ sentiments. In making investment decisions, it is important to know the value that you will be getting not the price that you will be paying.
To assist you in getting ahead, we have compiled a list of 12 stocks that have the potential to surpass peers amid the growth of key industries like semiconductors, cybersecurity, health, and AI. These sectors are considered the most-yielding and highly safe bets in this world of extreme volatility.
Our Methodology
For this list, we screened for 12 penny stocks from Finviz and Yahoo Finance that have exhibited positive returns in the past year. These companies have been listed in descending order, with the lowest returns to the highest. The growth trend has been captured from Google’s latest stock prices, in correspondence to the returns of the respective shares.
At Insider Monkey, we are obsessed with 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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BigBear.ai Holdings, Inc. (NYSE:BBAI)
Price momentum over the past year: 58.64%
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a Columbia-based AI giant delivering artificial intelligence-powered decision intelligence solutions. The core offerings of the company include data ingestion, data enrichment, predictive analysis, machine learning, supply chain management, and digital identity and biometric solutions. From national defense and intelligence agencies to transportation security and tourism sectors, the tech powerhouse serves some of the key critical markets. These customers depend on the company’s products to make decisions based on the best possible solution by creating order from complex data, recognizing blind spots, and developing predictive outcomes.
While this is a stock with mixed reviews, we remain a BigBear.ai Holdings, Inc. (NYSE:BBAI) bull, and we have many reasons to back up our stance.
In just six months, BBAI has witnessed a growth of about 90.3%. Although this may not be truly impressive, the stock still has a long way to go. Just recently, BigBear.ai Holdings, Inc. (NYSE:BBAI) was awarded a prime Indefinite Delivery/Indefinite Quantity (IDIQ) contract under the U.S. Department of Navy’s SeaPort Next Generation program, allowing the company to provide its innovative technologies to the U.S. Navy and other federal agencies. We view this as one of the many projects set to take off.
This America First tenure is entering the world of AI. Trump’s emphasis on “Safe, Secure, and Trustworthy Development and Use of AI” ought to benefit technology-delivering companies, particularly as overregulation could choke innovation. If America has to gain a competitive edge on the world stage, it needs to hold strong technological ground.
In addition, Trump recently disclosed the AI-centered Stargate initiative involving big names in the industry like Oracle Corporation and SoftBank Group Corp. This project, with an initial investment of $100B to fund AI infrastructure and support the “re-industrialization of the United States,” will benefit not only the ones directly involved but also the ones exposed.
Overall, BBAI ranks 9th on our list of best stocks to invest in for a stock market game. While we acknowledge the potential for BBAI as an investment, our conviction lies in the belief that some 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.
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Disclosure: None. This article is originally published at Insider Monkey.