Many of the most attractive investments in the stock market are what are called “idiosyncratic” investments.

Look that word up in the dictionary, and it is defined as "peculiar or individual."

In stock market terms, it means when a stock – or a group of stocks – sells off for a peculiar or individual reason. Reasons that do not have to do with the overall stock market but rather just those stocks.

The recent re-election of former President Donald Trump and his announcements afterwards created a Tsunami in the markets. One that sent many stocks crashing.

Many of those stocks represent attractive idiosyncratic opportunities.

Today’s HX Trader idea is another one. Here is the idea…

The company is scientific, engineering, and technology solutions company, Science Applications International Corp (NASDAQ: SAIC) or as it is known – SAIC.

This Reston, VA company was founded in 1969 by Bobo Beyster – a former scientist for Westinghouse Atomic Power Division and Los Alamos National Laboratory. The company's initial focus was on projects related to nuclear power and weapons programs.

Over the years, however, the company diversified to serve a broad group of areas with consulting and solutions services. Today, the company employs over 24,000 people and is on pace to make more than $7.5 billion in revenue. Almost all of their revenue comes from the US government.

Over the years, the company has done a good job of building the business. They have managed to grow earnings per share ("EPS") well over the last decade. Here is a table showing their EPS results over that period…

On the table you can see that they have grown almost three-fold and growth has been relatively consistent. It is a solid track record.

The nature of their business with government contracts also gives them solid visibility into their results. This allows the company to consistently beat analysts’ estimates for their profits.

Here is a table showing how their results have compared to analysts' estimates over the last five years…

They have missed only a few quarters in the last decade. They have not had large misses, but when they beat the quarter, they have crushed it.

Companies that post results like this usually become good (or great) stocks.

Beating earnings results like this also usually results in analysts having to revise their numbers higher. We call this positive “earnings revisions” and it is the number one driver of stock prices.

Here is a chart showing the stock price and the analysts estimates for Fiscal Year 2026 EPS over the last few years…

The company has a $5 billion market capitalization, so only about ten analysts cover the stock. This means there are fewer estimates, especially many years out. As a result, the negative revisions you see a couple years ago were "noise".

Focus on what the numbers have done over the last two years; you can see they have moved steadily higher. The stock has followed.

With solid earnings growth and operating momentum, the stock has performed well. Here is a chart of the stock price over the last decade…

The stock has been up fourfold over the period, and very recently, it hit a new all-time high of almost $160 per share.

Look at the chart, though, and you can see that right at the end it fell off a cliff!

Here is a shorter-term chart and a chart showing our favorite technical indicator – the relative strength index or "RSI" …

SAIC is an interesting stock. It has moved higher consistently but does get oversold and trigger our RSI “buy” signal reasonably often.

On the chart, we have circled when that signal was triggered over the last eighteen months. The stock has rallied strongly every time.

What happened for the stock to sell off so dramatically?

The company reported earnings on December 5 and the results were solid. They beat the analysts’ expectations and also raised their guidance.

Look closely at the chart; you can also see that the stock sold off BEFORE that earnings report. What is going on?

The answer is DOGE. Not the meme coin but the non-government advisory agency set up by Donald Trump to cut government costs and run by Elon Musk.

The “Department of Government Efficiency”. The initials are not an accident!

When this agency was announced, every company with most of their revenue coming from the US government sold off HUGE.

SAIC with almost all of their revenue coming from the government was one of the hardest hit. Was the move justified?

Time will tell, but we are skeptical.

Skeptical as to how many costs will actually be cut, when they will be cut, and how that will impact SAIC. Historically costs cuts in the Federal Government have led to MORE revenue for government outsourcers and not less.

Either way, we don't think anything will happen soon, and the operating momentum at SAIC will continue. As a result, we believe the stock should rally nicely and approach its old highs. That is more than +30% from the current levels…

Here is a table showing how the stock has performed after triggering the signal in the last ten years…

These are solid results, with the stock up more than two-thirds of the time within a couple of months. We like those kinds of odds!

We think the Trump tsunami has left another attractive profit opportunity in its wake, and we want to take advantage!