BigBear.ai (BBAI) moves 12.9% higher: Will this strength last?

BigBear.ai Holdings, Inc. (BBAI - Free Report) shares soared 12.9% in the last trading session to close at $7.99. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 33.6% gain over the past four weeks.

BigBear.ai shares likely jumped on key catalysts, including the VeriScan biometric launch at Nashville Airport, a U.S. Navy contract win and renewed AI stock enthusiasm fueled by rate-cut optimism.

This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -20%. Revenues are expected to be $35.55 million, down 14.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For BigBear.ai, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BBAI going forward to see if this recent jump can turn into more strength down the road.

BigBear.ai is a member of the Zacks Computers - IT Services industry. One other stock in the same industry, Fair Isaac (FICO - Free Report) , finished the last trading session 0.3% lower at $1534.77. FICO has returned 8.1% over the past month.

For Fair Isaac, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $7.46. This represents a change of +14.1% from what the company reported a year ago. Fair Isaac currently has a Zacks Rank of #3 (Hold).

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