Amentum Holdings, Inc. (AMTM), established as a leader in mission-critical solutions, is a prominent global provider of engineering, technical, and operational services. With a market cap of $4.7 billion, headquartered in Chantilly, Virginia, Amentum delivers innovative solutions across industries such as defense, aerospace, nuclear, and environmental sectors. 

Companies valued at less than $10 billion are generally considered “mid-cap” stocks and Amentum Holdings fits this criterion perfectly. Amentum drives long-term success and resilience in a rapidly changing global landscape by providing mission-critical solutions that support complex operations and challenges across industries such as defense, aerospace, environmental management, and nuclear services.

Amentum Holdings shares have declined 14.5% over the past month, significantly underperforming the broader S&P 500 Index’s ($SPX) marginal gains during the same time frame.

The stock had traded below its 50-day moving average since mid-December, indicating a bearish trend.

Amentum Holdings reported a 3.2% gain in its shares following the Q4 earnings release on Dec.16, though the stock declined over the subsequent three sessions. The company posted adjusted EPS of $0.28, a significant improvement compared to a loss of $0.07 per share in the prior year. Revenue reached $2.21 billion, representing a 3.5% year-over-year increase.

Amentum reaffirmed its fiscal year 2025 guidance, projecting revenues of $13.8 billion to $14.2 billion, adjusted EBITDA of $1.06 billion to $1.1 billion, and adjusted diluted EPS between $2.00 and $2.20. 

On Nov. 21, Amentum Holdings saw its stock rise over 10% following Raymond James' initiation of coverage with an "Outperform" rating and a price target of $30.

Despite AMTM's underperforming the broader sector, analysts maintain an optimistic outlook on the stock's prospects. Of the two analysts covering it, the consensus rating is “Strong Buy,” with a mean price target of $30.50, indicating a potential upside of 59.1% from its current level.