logo
BigBear.ai Stock (BBAI) Dips 15% Post Q2; Here's How to Gain Exposure Without the Risk

BigBear.ai Stock (BBAI) Dips 15% Post Q2; Here's How to Gain Exposure Without the Risk

BigBear. ai (BBAI) stock has lost about 15% after the artificial intelligence (AI)-powered data analytics company reported dismal second-quarter results. Despite the recent pullback, top analysts continue to rate BBAI as a Buy, citing the company's strong long-term growth outlook. They are encouraged by improvements in its core products and overall financial position. Additionally, the company's backlog of $380 million indicates robust demand and solid revenue visibility ahead. So, for long-term investors, this dip may present a buying opportunity, especially through exchange-traded funds (ETFs) that offer diversified exposure to BBAI without the risk of holding the stock directly.
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Thus, investors seeking exposure to BBAI stock may consider the Themes Generative Artificial Intelligence ETF (WISE) and SPDR S&P Software & Services ETF (XSW).
Themes Generative Artificial Intelligence ETF
The WISE ETF tracks the Solactive Generative Artificial Intelligence Index (SOLGAIN), which focuses on companies involved in AI-related industries such as data analytics, natural language processing, and AI-driven services.
Overall, the ETF has $32.62 million in AUM. Additionally, it has an expense ratio of 0.35%. The WISE ETF has returned 45% in the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 42 stocks held, 27 have Buys and 15 have a Hold rating. At $44.38, the average WISE ETF price target implies a 10.48% upside potential.
SPDR S&P Software & Services ETF
The XSW ETF seeks to track the performance of the S&P Software & Services Select Industry Index, which includes U.S.-based software and IT services companies. This ETF offers diversified exposure to firms involved in application software, systems software, data processing, and IT consulting across various market capitalizations.
Overall, the ETF has $471.8 million in assets under management (AUM) and an expense ratio of 0.35%. Over the past year, the XSW ETF has gained 20%.
On TipRanks, XSW has a Moderate Buy consensus rating based on 118 Buys, 21 Holds, and 1 Sell assigned in the last three months. At $232.83, the average XSW ETF price target implies 26.05% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to BBAI, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider WISE and XSW, as these ETFs offer exposure to BBAI stock.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

‘Joyride Might Be Over,' Says Top Investor About Nvidia Stock
‘Joyride Might Be Over,' Says Top Investor About Nvidia Stock

Business Insider

timean hour ago

  • Business Insider

‘Joyride Might Be Over,' Says Top Investor About Nvidia Stock

Nvidia (NASDAQ:NVDA) stock has built a reputation for consistently shattering quarterly earnings projections – a fact seasoned investors know all too well. But that winning streak can be a double-edged sword, as even a solid beat doesn't always translate into immediate post-earnings gains. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. That dynamic makes Nvidia's upcoming fiscal Q2 2026 earnings on August 27 especially intriguing. Momentum is already firmly in the bulls' corner, with NVDA shares up 91% since hitting a trough in early April. Expectations remain strong, though not at the triple-digit pace NVDA has delivered in its best quarters. The average analyst estimate of $45.75 billion points to year-over-year growth of 52.31%, with margins expected to hold at an impressive 72%. On paper, such results could still tempt investors to add shares ahead of the report – even if history suggests a short-term lull is possible afterward. But not everyone is convinced. One top investor, known as Oakoff Investments, is taking a far more cautious stance. 'I don't like the setup formed in NVDA's price action as it approaches the Q2 earnings release date,' warns the 5-star investor, who is among the top 4% of TipRanks' stock pros. Oakoff's caution stems largely from concerns about Nvidia's sales to China. While previous U.S. restrictions appear to have been lifted, there are signs the Chinese government may impose its own limits. That also possibility raises the stakes for Nvidia to deliver outsized growth in other regions to sustain investor enthusiasm – a task Oakoff believes is becoming increasingly difficult. 'If the market gets a slight hint towards further deterioration on this front, the stock may sell off badly even if NVDA beats the headline numbers as strongly as it did during the past 2 years,' Oakoff opined. Valuation is another sticking point. After months of gains, Oakoff argues the rally has been fueled by multiple expansion, pushing NVDA's Forward P/E ratio to an 'unsustainable' 42.5x. The result, according to Oakoff, is a setup vulnerable to disappointment. Given these risks, the investor is leaning toward profit-taking before the earnings call. 'I maintain a Hold rating, believing NVDA stock's high valuation and the new China uncertainty outweigh the likelihood of a strong Q2 beat,' Oakoff says. (To watch Oakoff Investments' track record, click here) Wall Street, in contrast, remains almost 'all in' on NVDA. With 35 Buys, 3 Holds, and a solitary Sell rating, the stock enjoys a Strong Buy consensus rating. (See NVDA stock forecast) To find good ideas for AI stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.

J.P. Morgan Remains a Buy on Resona Holdings (RSNHF)
J.P. Morgan Remains a Buy on Resona Holdings (RSNHF)

Business Insider

timean hour ago

  • Business Insider

J.P. Morgan Remains a Buy on Resona Holdings (RSNHF)

In a report released yesterday, Takahiro Yano from J.P. Morgan maintained a Buy rating on Resona Holdings, with a price target of Yen1,790.00. The company's shares closed last Monday at $10.17. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Yano covers the Financial sector, focusing on stocks such as Resona Holdings, Sumitomo Mitsui Holdings, and SBI Holdings. According to TipRanks, Yano has an average return of 33.1% and an 88.64% success rate on recommended stocks. Currently, the analyst consensus on Resona Holdings is a Moderate Buy with an average price target of $12.17. Based on Resona Holdings' latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $230.96 billion and a net profit of $54.94 billion. In comparison, last year the company earned a revenue of $181.08 billion and had a net profit of $31.62 billion

J.P. Morgan Sticks to Its Buy Rating for Concordia Financial Group (CCRDF)
J.P. Morgan Sticks to Its Buy Rating for Concordia Financial Group (CCRDF)

Business Insider

timean hour ago

  • Business Insider

J.P. Morgan Sticks to Its Buy Rating for Concordia Financial Group (CCRDF)

J.P. Morgan analyst Takahiro Yano maintained a Buy rating on Concordia Financial Group yesterday and set a price target of Yen1,330.00. The company's shares closed last Friday at $6.75. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Yano is a 5-star analyst with an average return of 33.1% and an 88.64% success rate. Yano covers the Financial sector, focusing on stocks such as Resona Holdings, Sumitomo Mitsui Holdings, and SBI Holdings. Currently, the analyst consensus on Concordia Financial Group is a Moderate Buy with an average price target of $8.22.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store