Viasat, Inc. VSAT recently announced that NASA has awarded it the Near Space Network (NSN) Services contract to enhance the agency's direct-to-Earth capabilities. With a ceiling value of $4.82 billion, the NSN contract is part of a five-year multi-award indefinite delivery, indefinite quantity contract program. It aligns with NASA’s aim to identify and take advantage of available commercial capabilities to support mission communications and navigation requirements.  
 
Under the NSN Services contract, Viasat will initially provide global ground segment support for NASA missions, with the possibility of expanding its services over time. A critical component of Viasat’s offering is its state-of-the-art Real-Time Earth (RTE) Ground-Segment-as-a-Service network that supports high-throughput satellite-to-ground communications, ensuring resilient and efficient data transfer for low earth orbit missions. 

With its capability to deliver multi-gigabit-per-second downlinks across a global network spanning six continents, the RTE network is expected to significantly enhance NASA’s ability to manage and transmit mission-critical data promptly. In addition to its high-speed capabilities, Viasat’s RTE network integrates cutting-edge technologies such as artificial intelligence, machine learning and cloud-based optimization to provide a modern, scalable solution for NASA's diverse communications requirements. 

Moreover, Viasat’s Defense and Advanced Technologies business will collaborate with other commercial providers, such as ATLAS Space Operations and the Alaska Satellite Facility, further strengthening NASA’s satellite communication infrastructure. These partnerships will likely provide NASA with a robust, geographically diverse solution that improves performance and offers cost-effective services compared to legacy systems.

Will VSAT Stock Gain?

Viasat’s impressive bandwidth productivity differentiates it from conventional and lower-yield satellite providers that run on incumbent business models. It has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, which makes it believe that mobile broadband will act as a profit churner with a significant improvement in in-flight connectivity revenues. 

The company’s network also provides access to a global Ka-band network, designed specifically to provide enhanced bandwidth and greater flexibility everywhere, with future plans to integrate additional space relay solutions for both L-band and Ka-band. These advancements are part of Viasat’s broader efforts to support NASA’s transition from its legacy Tracking and Data Relay Satellite System. 

As the demand for faster and more reliable connectivity continues to surge, contracts like this underscore Viasat’s position as a trusted partner of NASA, reinforcing its ability to offer comprehensive satellite communications solutions that support current and future operations. This will likely lead to higher revenues. An improved financial performance is likely to propel the stock upward.

VSAT Stock Price Performance

Shares of Viasat have plunged 52.5% over the past year against the industry’s growth of 28.3%.

Image Source: Zacks Investment Research

VSAT’s Zacks Rank and Stocks to Consider

Viasat currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Ubiquiti Inc. UI presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Its effective management of a strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%.
 
InterDigital, Inc. IDCC carries a Zacks Rank of 2 (Buy) at present. It has a long-term growth expectation of 17.44%.

IDCC pioneered advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops various advanced technology solutions for digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Keysight Technologies, Inc. KEYS carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and the rising adoption of driver-assistance systems globally.

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

InterDigital, Inc. (IDCC) : Free Stock Analysis Report

Viasat Inc. (VSAT) : Free Stock Analysis Report

Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report

Ubiquiti Inc. (UI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research