This 'Affordable' AI Stock Should Be on Your Radar
We have pivot points for an artificial intelligence name that's being integrated for U.S. border protection.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Looking for an AI-focused stock that still trades at an affordable share price? Who isn't?
As long as readers understand that being "affordable" for retail investors does not always and often does not equate to being inexpensive. In short, these stocks are speculative in nature and many do not now, and may not ever, turn a profit.
One name I've owned in the past and have my eyes on now is BigBear.ai Holdings BBAI. BigBear is a McLean, Virginia headquartered provider of artificial intelligence powered decision making solutions for national security-minded clientele as well as for commercial supply chain management. The firm is heavily focused upon digital identity, providing both software and services to its customers.
Those customers include, on the government side, the U.S. defense and intelligence agencies, and U.S. border protection services. On the commercial side, the firm provides services to the transportation, security, manufacturing and logistics industries. The firm's software assets are tailored to leverage biometrics and advanced vision AI technology to provide for accurate digital identity.
Earnings
BigBear will report the firm's second quarter financial results after the closing bell on August 11. Growth has stagnated, yet the share price has seen a recent rebirth. For the first quarter, the firm posted a GAAP EPS of -$0.25 on revenue of just $34.76 million. That was good for sales growth of just 5.1%. Both numbers disappointed investors. The firm guided at that time for full year sales of $160 million to $180 million. Wall Street is looking for about $168 million, which would amount to sales growth of 6.2%. Certainly nothing to write home about.
For the second quarter, Wall Street is looking for a GAAP EPS of -$0.06 on revenue of $41.2 million. A result like that would show growth of just 3.5%. So, why now? Why pay attention to this name?
Well, the fact is that they are involved in border and intelligence security. These are areas of greatly increased activity in 2025.
Old News
On June 17, before the shares started their comeback, BigBear confirmed multiple deployments of its biometric software for "Enhanced Passenger Processing" at key international airports and ports of entry. The firm is operating here and abroad at airports and seaports in support of U.S. Customs and Border Protection.
The software is known to have been deployed to two terminals at JFK in New York City, two terminals at LAX in Los Angeles, as well as the airports in Charlotte, Chicago International, Dallas-Fort Worth, Denver, as well as the port of Seattle. In addition, the software has been deployed to the airport in Montreal and the seaport in Vancouver as well as at Cross Border Express that connects the Tijuana, Mexico International Airport with its terminal in San Diego.
The stock then rallied hard in early July. At that time, it was announced that its "Genius" platform was then able to integrate with enterprise agentic AI providers salesforce CRM and ServiceNow NOW.
The Chart
Now, this stock is not an automatic "buy." If it were, I would be long the stock. I am not. It's on my radar. Maybe it should be on your radar. Let me show you this:
Readers will see that the stock developed a double-top pattern of bearish reversal from late June into July. Very interestingly, this resistance had been met at a precise 78.6% Fibonacci retracement of the stock's sell-off that ran from early February into mid-April. Hence, my dragging of the feet in jumping on the bandwagon.
Relative strength is quite good. However, the daily MACD is sending bearish signals. My feeling is that the 21-day EMA, now at $6.90 is what matters. That's where the swing crowd will either defend the stock or get themselves out of Dodge City. What we have is an obvious downside pivot and an obvious upside pivot. All we have to do is wait to see which way the wind blows. Probably not for long. Just don't look for the professional money to show up. They don't care about this one. Yet.
At the time of publication, Guilfoyle had no positions in any securities mentioned.
