The future looks promising for Amentum (AMTM), the newly formed defense contractor resulting from the merger of Jacobs’ Critical Mission Solutions (CMS) business and privately held Amentum. As of November 2024, the company was trading at a price-to-book (P/B) ratio of 1.6—significantly lower than comparable firms like Leidos, Booz Allen, and Kratos. This valuation appears unjustifiably low, presenting a strong buying opportunity. Until AMTM’s P/B ratio surpasses 2.0, investors should be accumulating shares aggressively.

That said, Amentum will likely face integration challenges through late 2025, possibly extending into 2026. However, once the dust settles, competitors may struggle to keep up. Industry insiders are already analyzing upcoming contract expirations over the next 1–2 years, looking for opportunities to capitalize on any weaknesses in the market. For those willing to ride out the near-term turbulence, Amentum offers significant long-term upside.