Zacks Investment Ideas feature highlights: BigBear.ai, Palantir Technologies, GameStop, Reddit and Rocket Lab

For Immediate ReleaseChicago, IL – December 27, 2024 – Today, Zacks Investment Ideas feature highlights BigBear.ai BBAI, Palantir Technologies PLTR, GameStop GME, Reddit RDDT and Rocket Lab RKLB.Buy These 3 Speculative Stocks NowThe Animal Spirits Are Alive and Well2024 has been one of the strongest-performing election years in history. With the Federal Reserve cutting interest rates and the “Santa Claus” rally phenomenon in full effect, the “animal spirits” are alive and well on Wall Street. Below are three momentum/speculative stocks to buy now to take advantage of:BigBear.aiBBAI Company OverviewZacks Rank #2 (Buy) stock BigBear.ai is a software company focused on artificial intelligence and software products for the defense, finance, and healthcare industries. The company leverages AI solutions to gather massive quantities of data to help organizations and governments make well-informed decisions in complicated situations and conditions. Below are three applications for BBAI’s technology, including:·       Government & Defense: Government clients leverage BBAI technology for mission readiness and threat detection.·       Analytics: AI solutions allow companies to analyze large data sets like never before to make informed decisions.·       Commercial Applications: BBAI technology can help companies to optimize their supply chains and logistics.Palantir Partnership$200 billion Palantir Technologies is the juggernaut in the rather obscure yet critical and profitable market that BBAI operates in. However, the good news for investors is that BigBear.ai and Palantir announced a partnership earlier this year in which the two companies’ products will be “integrated to extend the operating system for the modern enterprise with data and AI that provide advice and other actionable insights for complex business decisions.” In a statement on the company’s website, BBAI management said, “Big Bear.ai will have an opportunity to extend Palantir’s products with its forecasting, course of action optimization, conflation, computer vision, natural language processing, and other predictive analytics via low-code interfaces. Building upon the agility and scalability of Palantir’s Foundry data and analytics fabric, BigBear.ai’s products will enable businesses to achieve return on investment faster with out-of-the-box optimization solutions for pricing, inventory  and asset allocation, facility and operations management, and customer targeting  - all buil to be sensitive to today’s connected economy through the inclusion of BigBear.ai’s global data for situational awareness and competitive intelligence.” Bullish Chart Pattern & High Short InterestBBAI shares have been exhibiting unusual strength recently. For instance, on Christmas Eve, the stock rose 17% on volume turnover that more than doubled, even though the market was only open for a half day. Currently, the stock is attempting to break out of a high-tight-flag pattern. If the breakout is successful, the heavy short interest (15% of the float) will likely add fuel to the fire.Robust Earnings ExpectationsZacks Consensus Estimates suggest that BBAI EPS will grow by 64.29% and 77.27% over the next two quarters.GameStopGME Company OverviewZacks Rank #3 (Hold) stock GameStop is a global retailer that sells video games, consumer electronics, and collectibles. GME is the world’s largest video game retailer, with over 6,000 stores in the United States and 17 other countries. GME sells hardware and software for Xbox, PlayStation, and Nintendo, as well as accessories and collectibles. They also offer a trade-in program that allows customers to exchange used games, consoles, and accessories for in-store credit or gift cards.Equity Offerings Raise Cash HoardUnless you’ve been living under a rock, you are probably aware of the Reddit r/WallStreetBets group that orchestrated one of the largest short squeezes in history. Though GME has soared in recent years on little more than hype and gamma squeezes, the company can use its soaring stock price to its advantage. Following the most recent short squeeze, GME sold 75 million shares of its common stock to the public and raised more than $2 billion.With so much cash on hand, GME management can expand the business or do something like add Bitcoin to its balance sheet (which would cause a signficant short squeeze). As part of its digital transformation efforts, GameStop has hired talented individuals with ecommerce, UI, UX, and blockchain expertise. The company has pursued growth opportunities in crypto, NFTs, and Web 3 gaming verticals.Bull Flag ResetOne of the highest probability technical setups occurs when a stock has a strong run, resets in a bull flag fashion and tags the 10-week moving average. This is exactly what is happening with GME currently.Highly Unusual Call FlowA deep-pocketed option trader recently bought $3 million worth of the January $125 calls. The stock is currently trading at $30! Could the trader be the famed “Roaring Kitty” who sparked the initial GME short squeeze? Stay tuned…Rocket Lab RKLB Company OverviewRocket Lab is an end-to-end space company that provides reliable launch services, spacecraft design and manufacturing, satellite components, flight software, and orbit management. RKLB specializes in launching small satellites into low Earth orbit (LEO) using their Electron rocket.Bullish Catalysts & Contract WinsIn RKLB’s last earnings call, management touted several wins, including a multi-launch agreement with a confidential satellite operator, a record number of annual launches, with more scheduled next year, and $55 million in new launch contracts signed in Q3. Meanwhile, the company was selected by NASA to propose a mission architecture that enables faster and more cost-effective return of samples from Mars in a historic first. NASA contracts are notoriously lucrative and long-term.A Growth Path AheadThird-quarter revenue increased 55% to $105 million year-over-year.In addition, the company has a massive $1.05 billion backlog, representing 80% year-over-year growth. Furthermore, guidance of $125-$135 million means that Q4 will undoubtedly be the company’s best quarter ever.Bottom LineInvestors can take advantage of momentum stocks when equities are in a bull market phase, the Fed is cutting, and the animal spirits are alive and well.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GameStop Corp. (GME): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis Report Rocket Lab USA, Inc. (RKLB): Free Stock Analysis Report BigBear.ai Holdings, Inc. (BBAI): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks