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3 Stocks to Watch From the Satellite and Communication Industry
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The Zacks Satellite and Communication industry is undergoing a transformative phase, driven by the convergence of rapid technological progress and higher global connectivity requirements. Demand for increasing interest in space-based infrastructure drives the industry's prospects. The expansion of the Internet in remote areas through emerging low Earth orbit (LEO) constellations, such as Starlink and OneWeb, is driving demand for satellite broadband services. AI, Machine Learning and Big Data have given rise to multiple use cases across industries like oil and gas, agriculture, transportation and non-governmental organizations. EchoStar Corporation (SATS - Free Report) , Globalstar (GSAT - Free Report) and Iridium Communications (IRDM - Free Report) have significant growth potential in global security threats, surging defense budgets and demand for high-quality imagery and value-added services.
Macroeconomic uncertainty and evolving trade policy, inflation and supply chain dynamics could impact the outlook of the industry. Additionally, high capital spending and extended return-on-investment cycles may strain profitability for existing players and discourage new entrants.
Industry Description
The Zacks Satellite and Communication industry includes space technology companies that offer satellite imagery, intelligence services and spacecraft and robotics for space exploration, research and national security. They assist customers in understanding and navigating the changing planet, provide global broadband communications and explore space. These companies deliver communication services to media businesses, fixed and wireless telecommunications providers, data networking companies and Internet service providers. They also supply commercial satellite communication services to government and military entities. Additionally, the firms offer satellite-based consulting and technical services, covering the entire satellite lifecycle and infrastructure, from satellite and launch vehicle procurement to telemetry and commanding services.
What's Shaping the Industry's Future?
Spending on Space Infrastructure Could be Affected by Macroeconomic Weakness: With more than half of revenues from U.S. government customers, the industry will likely benefit from increasing defense and space infrastructure budgets. The explosion of space-based intelligence, surveillance, and reconnaissance and communications is expected to boost government investments in the sector. However, weakness in global macroeconomic conditions amid tariff troubles could compel customers to lower spending, which does not bode well for industry participants. Volatile supply chain dynamics and inflation could lead to higher costs and increased lead time, which are major concerns. Also, competition from fiber optics and terrestrial networks, in certain regions, could deter the growth of the industry participants, as these may offer relatively lower-cost and higher-speed alternatives.
Advancements in Technology Hold the Key: There has been a radical change in highly specialized satellite manufacturing patterns. More emphasis is put on using ordinary buses and computer-aided design tools to customize the communications payloads. A mass-produced system is adopted, and several satellites are manufactured in an assembly line. Integration and testing have become highly automated. The extent of testing is lowered after prototyping and initial production is completed. Countries with comprehensive space programs have distinct military, economic and scientific advantages. However, complexity and barriers to entry into space have allowed only a few to develop notable capabilities. The demand for small satellites across regions is expected to increase over time. North America has the bulk of the market share, followed by the Asia Pacific, Europe and the rest of the world. North America maintains its dominance with the highest number of small satellite launches by government end users. The companies continue to align their products and services with the needs of the U.S. Department of Defense’s National Defense Strategy and the growing demand for international defense and intelligence.
Subscriber Momentum to Drive Growth: Wide proliferation and cheaper access to space technology have diverse end-market users. The companies share a strategic relationship with various government organizations, including military and disaster response agencies and non-governmental organizations, to provide robust, tactical, real-time voice and low-latency data command and control communications. A comprehensive product portfolio enables companies to expand their customer base and offset the losses from one product category with the benefits from another. High product quality increases brand loyalty and enhances performance in a competitive market. For civil customers, notably NASA, growth is being driven by space exploration programs. For commercial customers, growth drivers include a strong demand for imagery due to new use cases, space-based remote sensing, Geosynchronous Equatorial Orbit (GEO) replacement demand and LEO communications programs. Advanced mobile networks need strong backhaul and global infrastructure, increasing reliance on satellite support for rural and oceanic coverage.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Satellite and Communication industry is housed within the broader Zacks Computer and Technology sector. It currently has a Zacks Industry Rank #66, which places it in the top 27% of more than 243 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s positioning in the top 50% of the Zacks-ranked industries can be attributed to the positive earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Since July 31, 2025, the industry’s earnings estimates for the current year have improved from a loss of $1.45 to a loss of $1.22.
Before we present a few satellite and communication stocks you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry Outperforms Sector, S&P 500
In the past year, the Zacks Satellite and Communication industry outperformed the S&P 500 composite and the broader Zacks Computer and Technology sector.
The industry has gained 151.1% over this period compared with the S&P 500’s return of 18.6%. The broader sector has moved up 29.9%.
One-Year Price Performance
Industry's Current Valuation
The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is commonly used for satellite and communication stocks. The industry has a trailing 12-month EV/EBITDA of 28.95X compared with the S&P 500’s 18.68X. The sector’s trailing 12-month EV/EBITDA stands at 19.8X.
In the past five years, the industry has traded as high as 29.8X and as low as 7.73X, with a median of 18.47X, as the chart below shows.
3 Stocks to Add to the Watchlist
EchoStar: SATS is a global provider of satellite communication solutions, broadband services, and video delivery platforms under its brands EchoStar, Sling TV, Boost Mobile, Boost Infinite, DISH TV, Hughes, HughesNet, HughesON and JUPITER brands.
In September 2025, SATS gave extensive details regarding its vision and future strategy. SATS has pivoted to an asset-light growth company following an unexpected FCC action (May 2025) that froze EchoStar’s planned LEO satellite system and spectrum-based growth strategy. It was compelled to liquidate some spectrum assets to remain viable. It sold 600 MHz and 3.45 GHz (C-band) spectrum licenses to AT&T for $22.65 billion and AWS-4 and H-block spectrum licenses for approximately $17 billion to SpaceX. It also has established technical and financial arrangements with SpaceX for access to its Direct-to-Cell system, enabling Boost Mobile to offer satellite-based connectivity.
Post these transactions, SATS remains a Fortune 250 company with diversified operations. It has a subscriber reach of nearly 5.3 million DISH households and a total of 15.3 million subscribers. It continues to retain roughly 45 MHz of spectrum following AT&T and SpaceX transactions. It will have $31.2 billion in proceeds from the above transactions and plans to repay $11.4 billion of debt. Remaining pro forma debt would be $13 billion with pro forma cash of nearly $24 billion and about $8.5 billion of SpaceX equity
For its DISH and Sling businesses, SATS is focused on content innovation and user experience as differentiators. Hughes is the smallest division by revenue, and SATS is making a strategic transition toward enterprise and government markets for this line of business.
The current-year earnings are pegged at a loss of $3.86, unchanged in the past 60 days. The stock has surged 193.7% over the past year.
Price and Consensus: SATS
Globalstar: GSAT operates a LEO satellite constellation infrastructure to deliver mobile satellite services (MSS) and voice and data communications services to customers across various sectors, including retail, business and governments. Its terrestrial spectrum consists of Band 53 and its 5G variant, n53 and XCOM RAN.
Globalstar is in the midst of a comprehensive infrastructure upgrade and recently launched its global ground infrastructure program for its next-generation Extended MSS Network, or the C-3 system. Under this program, it will add about 90 antennas across 35 ground stations in 25 countries, significantly boosting network capacity and resiliency.
Globalstar is benefiting from continued growth in wholesale capacity services and commercial IoT revenues, as well as growing traction in the government, especially U.S. federal agencies and defense markets.
GSAT is advancing new innovative platforms, such as the RM200 two-way module and XCOM RAN, which could drive the top line further. The RM200M module is the first satellite module to feature integrated GNSS, Bluetooth, an accelerometer and an application processor, enabling advanced two-way communication. It is witnessing growing traction across verticals such as oil & gas, defense and MVNOs, and has been tested by over 50 partners. It recently announced the commercial rollout of the RM200 two-way module. With XCOM RAN, GSAT is eyeing entry into terrestrial wireless markets, significantly broadening its total addressable market.
Nonetheless, macro uncertainty and stiff competition from other players remain overhangs. Also, new product rollouts entail execution risks. Delays in client onboarding, technical troubles, or slower commercialization could weigh on revenue growth.
GSAT currently carries a Zacks Rank #3 (Hold). The current-year earnings are pegged at a loss of 8 cents, unchanged in the past 60 days. The stock has skyrocketed 183% over the past year.
Price and Consensus: GSAT
Iridium Communications: Headquartered in McLean, VA, Iridium operates one of the largest commercial constellations with a mesh architecture of 66 operational LEO satellites to route traffic using radio frequency crosslinks. The architecture provides strong performance by minimizing the need for ground infrastructure.
Iridium continues to deliver growth across key segments like commercial IoT, voice and data, and the government segment. IRDM’s new business line, known as Iridium Satellite Time and Location (“STL”), is a Positioning, Navigation and Timing (“PNT”) service that offers a resilient alternative to GPS and other GNSS systems, which can be vulnerable to jamming or spoofing. Interest in this solution has grown significantly, and the STL business is targeted to generate more than $100 million in service revenues per year by 2030.
The company expects to generate about $1 billion in service revenues by 2030. To achieve this long-term goal, management is focused on developing several services, including Direct-to-Device (Iridium NTN Direct), IoT (Iridium Certus IoT products) and satellite-based personal communication devices in addition to STL. Iridium’s 25-year relationship with the U.S. Department of Defense is a significant moat. The company continues to secure new DoD contracts and expects $108 million in revenues for 2025 from government business, which includes the final step-up in the EMSS contract.
On the last earnings call, it lowered the full-year 2025 service revenue growth guidance from 5-7% to 3-5%, while the company maintained its long-term outlook. The decrease is mainly due to three factors: the transition of maritime broadband to a companion service, voice subscriber losses related to canceled USAID funding noted in the first quarter and a delay in PNT revenues, now expected in 2026. However, it forecasts OEBITDA at $490 million to $500 million, up from $470.6 million in 2024. It reports third-quarter 2025 earnings on Oct. 23.
IRDM currently carries a Zacks Rank #3. The earnings estimate for 2025 is pegged at 98 cents, unchanged over the past 60 days. The stock has lost 36.3% in the past year.
Price and Consensus: IRDM
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3 Stocks to Watch From the Satellite and Communication Industry
The Zacks Satellite and Communication industry is undergoing a transformative phase, driven by the convergence of rapid technological progress and higher global connectivity requirements. Demand for increasing interest in space-based infrastructure drives the industry's prospects. The expansion of the Internet in remote areas through emerging low Earth orbit (LEO) constellations, such as Starlink and OneWeb, is driving demand for satellite broadband services. AI, Machine Learning and Big Data have given rise to multiple use cases across industries like oil and gas, agriculture, transportation and non-governmental organizations. EchoStar Corporation (SATS - Free Report) , Globalstar (GSAT - Free Report) and Iridium Communications (IRDM - Free Report) have significant growth potential in global security threats, surging defense budgets and demand for high-quality imagery and value-added services.
Macroeconomic uncertainty and evolving trade policy, inflation and supply chain dynamics could impact the outlook of the industry. Additionally, high capital spending and extended return-on-investment cycles may strain profitability for existing players and discourage new entrants.
Industry Description
The Zacks Satellite and Communication industry includes space technology companies that offer satellite imagery, intelligence services and spacecraft and robotics for space exploration, research and national security. They assist customers in understanding and navigating the changing planet, provide global broadband communications and explore space. These companies deliver communication services to media businesses, fixed and wireless telecommunications providers, data networking companies and Internet service providers. They also supply commercial satellite communication services to government and military entities. Additionally, the firms offer satellite-based consulting and technical services, covering the entire satellite lifecycle and infrastructure, from satellite and launch vehicle procurement to telemetry and commanding services.
What's Shaping the Industry's Future?
Spending on Space Infrastructure Could be Affected by Macroeconomic Weakness: With more than half of revenues from U.S. government customers, the industry will likely benefit from increasing defense and space infrastructure budgets. The explosion of space-based intelligence, surveillance, and reconnaissance and communications is expected to boost government investments in the sector. However, weakness in global macroeconomic conditions amid tariff troubles could compel customers to lower spending, which does not bode well for industry participants. Volatile supply chain dynamics and inflation could lead to higher costs and increased lead time, which are major concerns. Also, competition from fiber optics and terrestrial networks, in certain regions, could deter the growth of the industry participants, as these may offer relatively lower-cost and higher-speed alternatives.
Advancements in Technology Hold the Key: There has been a radical change in highly specialized satellite manufacturing patterns. More emphasis is put on using ordinary buses and computer-aided design tools to customize the communications payloads. A mass-produced system is adopted, and several satellites are manufactured in an assembly line. Integration and testing have become highly automated. The extent of testing is lowered after prototyping and initial production is completed. Countries with comprehensive space programs have distinct military, economic and scientific advantages. However, complexity and barriers to entry into space have allowed only a few to develop notable capabilities. The demand for small satellites across regions is expected to increase over time. North America has the bulk of the market share, followed by the Asia Pacific, Europe and the rest of the world. North America maintains its dominance with the highest number of small satellite launches by government end users. The companies continue to align their products and services with the needs of the U.S. Department of Defense’s National Defense Strategy and the growing demand for international defense and intelligence.
Subscriber Momentum to Drive Growth: Wide proliferation and cheaper access to space technology have diverse end-market users. The companies share a strategic relationship with various government organizations, including military and disaster response agencies and non-governmental organizations, to provide robust, tactical, real-time voice and low-latency data command and control communications. A comprehensive product portfolio enables companies to expand their customer base and offset the losses from one product category with the benefits from another. High product quality increases brand loyalty and enhances performance in a competitive market. For civil customers, notably NASA, growth is being driven by space exploration programs. For commercial customers, growth drivers include a strong demand for imagery due to new use cases, space-based remote sensing, Geosynchronous Equatorial Orbit (GEO) replacement demand and LEO communications programs. Advanced mobile networks need strong backhaul and global infrastructure, increasing reliance on satellite support for rural and oceanic coverage.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Satellite and Communication industry is housed within the broader Zacks Computer and Technology sector. It currently has a Zacks Industry Rank #66, which places it in the top 27% of more than 243 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s positioning in the top 50% of the Zacks-ranked industries can be attributed to the positive earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Since July 31, 2025, the industry’s earnings estimates for the current year have improved from a loss of $1.45 to a loss of $1.22.
Before we present a few satellite and communication stocks you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry Outperforms Sector, S&P 500
In the past year, the Zacks Satellite and Communication industry outperformed the S&P 500 composite and the broader Zacks Computer and Technology sector.
The industry has gained 151.1% over this period compared with the S&P 500’s return of 18.6%. The broader sector has moved up 29.9%.
One-Year Price Performance
Industry's Current Valuation
The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is commonly used for satellite and communication stocks. The industry has a trailing 12-month EV/EBITDA of 28.95X compared with the S&P 500’s 18.68X. The sector’s trailing 12-month EV/EBITDA stands at 19.8X.
In the past five years, the industry has traded as high as 29.8X and as low as 7.73X, with a median of 18.47X, as the chart below shows.
3 Stocks to Add to the Watchlist
EchoStar: SATS is a global provider of satellite communication solutions, broadband services, and video delivery platforms under its brands EchoStar, Sling TV, Boost Mobile, Boost Infinite, DISH TV, Hughes, HughesNet, HughesON and JUPITER brands.
In September 2025, SATS gave extensive details regarding its vision and future strategy. SATS has pivoted to an asset-light growth company following an unexpected FCC action (May 2025) that froze EchoStar’s planned LEO satellite system and spectrum-based growth strategy. It was compelled to liquidate some spectrum assets to remain viable. It sold 600 MHz and 3.45 GHz (C-band) spectrum licenses to AT&T for $22.65 billion and AWS-4 and H-block spectrum licenses for approximately $17 billion to SpaceX. It also has established technical and financial arrangements with SpaceX for access to its Direct-to-Cell system, enabling Boost Mobile to offer satellite-based connectivity.
Post these transactions, SATS remains a Fortune 250 company with diversified operations. It has a subscriber reach of nearly 5.3 million DISH households and a total of 15.3 million subscribers. It continues to retain roughly 45 MHz of spectrum following AT&T and SpaceX transactions. It will have $31.2 billion in proceeds from the above transactions and plans to repay $11.4 billion of debt. Remaining pro forma debt would be $13 billion with pro forma cash of nearly $24 billion and about $8.5 billion of SpaceX equity
For its DISH and Sling businesses, SATS is focused on content innovation and user experience as differentiators. Hughes is the smallest division by revenue, and SATS is making a strategic transition toward enterprise and government markets for this line of business.
SATS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The current-year earnings are pegged at a loss of $3.86, unchanged in the past 60 days. The stock has surged 193.7% over the past year.
Price and Consensus: SATS
Globalstar is in the midst of a comprehensive infrastructure upgrade and recently launched its global ground infrastructure program for its next-generation Extended MSS Network, or the C-3 system. Under this program, it will add about 90 antennas across 35 ground stations in 25 countries, significantly boosting network capacity and resiliency.
Globalstar is benefiting from continued growth in wholesale capacity services and commercial IoT revenues, as well as growing traction in the government, especially U.S. federal agencies and defense markets.
GSAT is advancing new innovative platforms, such as the RM200 two-way module and XCOM RAN, which could drive the top line further. The RM200M module is the first satellite module to feature integrated GNSS, Bluetooth, an accelerometer and an application processor, enabling advanced two-way communication. It is witnessing growing traction across verticals such as oil & gas, defense and MVNOs, and has been tested by over 50 partners. It recently announced the commercial rollout of the RM200 two-way module. With XCOM RAN, GSAT is eyeing entry into terrestrial wireless markets, significantly broadening its total addressable market.
Nonetheless, macro uncertainty and stiff competition from other players remain overhangs. Also, new product rollouts entail execution risks. Delays in client onboarding, technical troubles, or slower commercialization could weigh on revenue growth.
GSAT currently carries a Zacks Rank #3 (Hold). The current-year earnings are pegged at a loss of 8 cents, unchanged in the past 60 days. The stock has skyrocketed 183% over the past year.
Price and Consensus: GSAT
Iridium continues to deliver growth across key segments like commercial IoT, voice and data, and the government segment. IRDM’s new business line, known as Iridium Satellite Time and Location (“STL”), is a Positioning, Navigation and Timing (“PNT”) service that offers a resilient alternative to GPS and other GNSS systems, which can be vulnerable to jamming or spoofing. Interest in this solution has grown significantly, and the STL business is targeted to generate more than $100 million in service revenues per year by 2030.
The company expects to generate about $1 billion in service revenues by 2030. To achieve this long-term goal, management is focused on developing several services, including Direct-to-Device (Iridium NTN Direct), IoT (Iridium Certus IoT products) and satellite-based personal communication devices in addition to STL. Iridium’s 25-year relationship with the U.S. Department of Defense is a significant moat. The company continues to secure new DoD contracts and expects $108 million in revenues for 2025 from government business, which includes the final step-up in the EMSS contract.
On the last earnings call, it lowered the full-year 2025 service revenue growth guidance from 5-7% to 3-5%, while the company maintained its long-term outlook. The decrease is mainly due to three factors: the transition of maritime broadband to a companion service, voice subscriber losses related to canceled USAID funding noted in the first quarter and a delay in PNT revenues, now expected in 2026. However, it forecasts OEBITDA at $490 million to $500 million, up from $470.6 million in 2024. It reports third-quarter 2025 earnings on Oct. 23.
IRDM currently carries a Zacks Rank #3. The earnings estimate for 2025 is pegged at 98 cents, unchanged over the past 60 days. The stock has lost 36.3% in the past year.
Price and Consensus: IRDM