Diverse Capabilities and Merger Propel Amentum Holdings, Inc. (AMTM) to Robust Earnings Growth

Amentum Holdings Inc. (NYSE:AMTM) is one of the high-growth industrial stocks to buy. On February 11, analysts at Citizens reiterated a Market Outperform and a $40 price target on Amentum Holdings Inc. (NYSE:AMTM).

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The analysts remain bullish on the company’s outlook as it undergoes a transformative merger that has established it as a large service provider with diverse capabilities. The company is benefiting from its 2024 merger with Jacobs Solutions, which created a combined company that is a global leader in advanced engineering and innovative technology solutions.

The merger has allowed the company to align with federal priorities beyond the Department of Defense. Consequently, it has broadened its market potential, positioning it to benefit from AI data center investments that are accelerating opportunities.

On February 9, Amentum Holdings delivered solid first-quarter fiscal 2026 results with adjusted earnings per share of $0.54, more than double consensus estimates of $0.25. Revenue came in at $3.24 billion, down 5% year over year, due to contract transitions from consolidated to unconsolidated joint ventures.

Amentum Holdings (NYSE:AMTM) is a leading global provider of advanced engineering, technology, and mission-critical solutions for the U.S. government, its allies, and commercial clients.

While we acknowledge the potential of AMTM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.