Viasat, Inc. VSAT recently announced that it has been awarded an Indefinite Delivery/Indefinite Quantity contract from the U.S. General Services Administration. With a ceiling value of $568 million, the five-year deal aims to support the rapid migration of command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance technologies from Special Operations Forces (SOF) to General Purpose Forces (GPF).

What VSAT Brings to the Table?

Viasat brings an array of cutting-edge technologies and solutions, including tactical gateways, advanced networking systems, airborne satellite communication (SATCOM) terminals, ground terminals, modems, beyond-line-of-sight satellite services and robust cybersecurity and encryption capabilities. This contract will likely allow the U.S. Department of Defense to address key priorities such as enhancing mobility, ensuring resilient networking, improving cybersecurity, and expanding broadband SATCOM services. 

These advancements will enable SOF and GPF to deploy new operational capabilities, products and services, enhancing mission effectiveness and ensuring the safety of warfighters. Additionally, the contract will facilitate the rapid acquisition of emerging technologies, allowing military users across various services to maintain operational readiness through access to cutting-edge solutions.

VSAT Stock to 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. 

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

VSAT’s Stock Price Performance

Shares of Viasat have plunged 61% over the past year against the industry’s growth of 33.9%.

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VSAT’s Zacks Rank and Key Picks

Viasat currently carries a Zacks Rank #4 (Sell). 

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

Ericsson ERIC carries a Zacks Rank of 2 (Buy) at present. In the last reported quarter, ERIC delivered an earnings surprise of 22.22%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Headquartered in Stockholm, Sweden, Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is a leader in telecommunications and is now expanding its role into an ICT (Information and Communications Technology) solutions provider. 

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. 

Ubiquiti Inc. UI sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. 

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Ericsson (ERIC) : Free Stock Analysis Report

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

Viasat Inc. (VSAT) : Free Stock Analysis Report

Ubiquiti Inc. (UI) : Free Stock Analysis Report

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