Ohio's Wright Brothers first accomplished winged flight in 1903. 66
years later, Ohio's Neil Armstrong first walked the moon's surface.
"That's one small step for [a] man, one giant leap for mankind," he
radioed back via satellite. Tack on another 45 years. Numerous
commercial satellite businesses transmit profits into investor
portfolios. These technical accomplishments spanning the 20th
century are so grand in scale, they defy the very gravity believed
to weigh on their possibilities.
Satellite communication hasn't become a global industry without
more than its fair share of earnings crashes and unprofitable
business models. Yet, very successful satellite communication
companies can provide lift to an investor's portfolio in ways never
Wireless connectivity and content delivery is the rocket fuel
behind this momentum. Satellites transmit digitized information and
ignore borders. They work for those who need fresh content
worldwide, and are willing to pay for it, worldwide. As better
satellite-receiving technology finds its way into more and more
consumer devices, possibilities expand -- and broaden any
successful satellite company's revenue footprint.
The SATELLITE COMMUNICATION industry of the Zacks Industry Rank
list gained 17 positions last week, rising on the back of three key
upward analyst revisions. This industry category of 10 companies
now holds a very high rank of #10 out of 265 Zacks Industry Rank
groups. With 3 positive earnings estimate analyst revisions
compared to only 1 negative revision, the overall upward industry
trajectory has fueled the potential for huge positive Earnings per
Share (EPS) surprises.
The two following companies hold a current Zacks Rank #1 (Strong
Buy) rating, up from #2 ranks a week ago. Acquiring a rank from a
Buy (Zacks Rank #2) to a Strong Buy (Zacks Rank #1) is essential.
High Zacks Ranks foretell outperformance of a stock for 1 to 3
months in response to future positive earnings estimate revisions.
Keep such broad industry trends on your radar. They can be pivotal
in understanding the orbit of future shareholder value. These two
companies also garnered a longer-term Zacks Recommendation of
"Outperform." That can foretell more outperformance out to 6 months
While forward P/E valuations may be sky high these days, history
tells us the sky is certainly not the limit.
SATS is a Zacks Rank #1 (Strong Buy). It has a Zacks Outperform
rating too. SATS's most recent earning's surprise was 133%.
EchoStar Corp. is a publicly traded company. The company operates
two primary businesses, a digital set-top box business and a fixed
satellite services business. Their set-top box business designs,
develops and distributes set-top boxes and related products for
direct-to-home satellite service providers.
Management reports quarterly earnings on August 5, 2014.
Digital Globe Inc.
DGI is a Zacks Rank #1 (Strong Buy). It has a Zacks Outperform
rating too. DGI's most recent Q1-14 earnings surprise was +86%.
Management has delivered earnings surprises between +22 and +700%
for nine straight quarters!
DigitalGlobe, Inc. is a global provider of commercial
high-resolution earth imagery products and services. Headquartered
in Longmont, Colorado, the company operates as a subsidiary of
Morgan Stanley & Company Inc.
DigitalGlobe operates a constellation of high resolution earth
imaging satellites, possesses a growing aerial imagery network and
offers a comprehensive geoinformation product store --
DigitalGlobe.com -- that allows quick access and order a wide
variety of imagery and derivative information products.
DigitalGlobe conducts its business through two segments: defense
and intelligence, and commercial. The company's products include
DigitalGlobe System, QuickBird satellite, ImageAtlas; and
GlobeXplorer. DigitalGlobe System offers collection and archival of
geospatial information data and QuickBird satellite, which provides
commercial resolution imaging systems.
Management reports quarterly earnings on August 5, 2014, the
same day as Echostar.
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ECHOSTAR CORP (SATS): Free Stock Analysis
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