EchoStar SATS shares soared 7.4% in the last trading session to close at $119.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.8% gain over the past four weeks.
EchoStar stock grew amid speculation that SpaceX is preparing to file for an initial public offering, according to the report from Bloomberg, boosting sentiment across space and satellite-related stocks. Given EchoStar’s strategic alignment with SpaceX and Starlink, investors are viewing the company as a potential indirect beneficiary of any valuation upside, which has helped drive the recent rally.
Rising demand for satellite services is also fueling investor interest, particularly as global connectivity, direct-to-device solutions and space-based communications gain traction. EchoStar has emphasized its positioning within this evolving ecosystem, highlighting the long-term commercial potential of connecting devices across the globe. Its spectrum assets and partnerships place it in a favorable position to benefit from these structural industry trends.
Beyond external catalysts, company-specific factors are also supporting momentum. EchoStar is undergoing a strategic transformation, with expectations of near-term liquidity from pending spectrum sales. At the same time, it is moving closer to breakeven in its wireless business while reducing costs through network decommissioning and operational restructuring. These efforts, combined with a more disciplined approach to capital allocation, are improving the company’s financial outlook and supporting the stock’s strength.
This seller of set-top boxes and provider of satellite services to Dish Network is expected to post quarterly loss of $0.87 per share in its upcoming report, which represents a year-over-year change of -22.5%. Revenues are expected to be $3.66 billion, down 5.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For EchoStar, the consensus EPS estimate for the quarter has been revised 11.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SATS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
EchoStar is a member of the Zacks Satellite and Communication industry. One other stock in the same industry, Globalstar GSAT, finished the last trading session 10.3% higher at $67.38. GSAT has returned -2.8% over the past month.
For Globalstar, the consensus EPS estimate for the upcoming report has changed -250% over the past month to -$0.02. This represents a change of +80% from what the company reported a year ago. Globalstar currently has a Zacks Rank of #3 (Hold).
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>EchoStar Corporation (SATS) : Free Stock Analysis Report
Globalstar, Inc. (GSAT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
