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VSAT Solution Supports Advanced Maritime Application: Stock to Gain?

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Viasat, Inc. (VSAT - Free Report) recently announced that it has collaborated with the U.S. Department of Defense and supported the maritime autonomous system experiment conducted by the AUKUS coalition (United States, Australia and the U.K.) during a trilateral exercise at New South Wales in Australia. It is part of the Maritime Big Play initiative, whose objective is to conduct trilateral exercises focused on ensuring interoperability, improving operational capabilities and expanding the use of maritime autonomous systems. Military strategy worldwide is going through a transformative phase as uncrewed, autonomous vehicles are gaining popularity across air, maritime and ground operations.

In the recently conducted experiment, VSAT provided a NetAgility Software Defined Networking platform that ensures simplified management of network and radio devices. The company’s Multidomain Uncrewed Secure Integrated Communications (MUSIC) powered by the NetAgility platform connected different uncrewed autonomous vehicles such as sub-surface vessels, uncrewed surface platforms and more. This ensured smooth communication across the whole setup. In addition, a VSAT commercial satellite, cellular, MOJO-Next Tactical Data Link gateway was used to ensure seamless compatibility of devices and sensors from different partners of the coalition.

Will VSAT Stock Benefit From The Venture?

Viasat’s MUSIC and MOJO Next created a robust communication infrastructure that enabled the AUKUS coalition network to efficiently share position location information, situational updates and command and control messages across all platforms. These advanced capabilities can provide significant advantages in diverse operational environments. The successful venture underscores state of the art technological capabilities and reliability of VSAT solutions.

The use of autonomous devices is expected to be more prevalent in the defense sector worldwide for improved battlefield awareness and decision-making. These emerging market trends present solid growth potential for Viasat's comprehensive tactical network solutions portfolio.

Viasat is also ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. These satellites will be capable of covering one-third of the world, including all Americas. The ViaSat-3 platform will help form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. In a nutshell, Viasat has garnered enough economics of scale and scope to serve vast emerging markets in South America, Africa, the Middle East and Western Asia.

However, intensifying competition from other major industry players, such as AT&T, Comtech, Starlink, and DISH Network, is impeding net sales.

VSAT’s Stock Price Movement

Shares of Viasat have lost 59.3% over the past year against the industry’s growth of 41.3%.

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VSAT’s Zacks Rank and Key Picks

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

Zillow Group, Inc. (ZG - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor. 

InterDigital (IDCC - Free Report) sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Workday Inc. (WDAY - Free Report) carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 9.88%.

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.


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