ViSat (VSAT): A Rapidly Growing Momentum Stock Still Available at a Discount
Momentum Investing Overview: Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of buying low. It can be risky as stocks may lose momentum if their valuations become unjustified.
Viasat (VSAT) Stock Analysis: VSAT has shown significant price momentum, gaining 144.2% over 12 weeks, and is currently trading at a reasonable valuation with a Price-to-Sales ratio of 0.93, making it a strong candidate for momentum investing.
Quantum Computing Potential: Quantum computing is rapidly advancing, with major tech companies integrating it into their infrastructure. Experts believe it could surpass AI in technological impact.
Investment Recommendations: Zacks Investment Research offers tools and strategies for stock-picking, including a report on stocks poised to dominate the quantum computing landscape, highlighting the importance of backtesting investment strategies.
Trade with 70% Backtested Accuracy
Analyst Views on VSAT
About VSAT
About the author

- New Investment Position: Brightline Capital Management initiated a new position in Ecovyst (NYSE: ECVT) by acquiring 2,050,000 shares valued at $19.95 million during Q4 2026, indicating strong confidence in the company's future growth potential and enhancing its portfolio's long-term returns.
- Asset Allocation Shift: This acquisition now represents 8.06% of Brightline's 13F reportable assets, placing Ecovyst alongside concentrated investments like CSTM and DAN, which signals management's focus on the company's profitability and strategic positioning.
- Significant Performance Growth: In Q3, Ecovyst reported $204.9 million in sales, a 33% year-over-year increase, with an adjusted EBITDA of $57.5 million and a 28.1% margin, showcasing its robust performance in specialty catalysts and sulfuric acid recycling services.
- Capital Structure Optimization: Ecovyst plans to divest its Advanced Materials and Catalysts segment for $556 million, with expected net proceeds of about $530 million, which will lower its leverage ratio to below 1.5x, enhancing financial stability and setting the stage for future growth.
- Stock Price Surge: ViaSat (VSAT) shares rose over 12% in recent Monday trading, reflecting a significant boost in market optimism regarding the company's future performance, particularly following the upgrade from Deutsche Bank, which has notably enhanced investor confidence.
- Analyst Rating Upgrade: Deutsche Bank's upgrade of ViaSat indicates a positive outlook from analysts on the company's potential in the satellite communications sector, which may attract more institutional investors and further drive the stock price upward.
- Positive Market Reaction: The substantial increase in stock price not only reflects investor approval of Deutsche Bank's analyst views but may also prompt other financial institutions to reassess ViaSat, potentially influencing the overall market perception of the company.
- Optimistic Future Outlook: With the ongoing growth in satellite communication demand, ViaSat's market prospects are widely regarded as favorable, and the analyst upgrade could open up more investment opportunities for the company, facilitating its further development in a competitive market.
- Stock Performance: Viasat Inc's shares recently surpassed the average analyst 12-month target price of $41.12, trading at $41.70, indicating increased market confidence that may attract more investor interest.
- Analyst Reactions: When a stock reaches an analyst's target price, they may either downgrade their valuation or raise their target, reflecting optimistic expectations about the company's fundamentals, which could lead to an upward adjustment of the target price.
- Target Price Distribution: Among analysts covered by Zacks, Viasat's average target price is $41.12, but there is significant variance, with a low target of $20.00 and a high of $52.00, resulting in a standard deviation of $13.249, indicating differing views on the company's future performance.
- Investor Decision-Making: As the stock price exceeds the average target, investors are prompted to reassess the company, considering whether to hold or reduce their positions, a dynamic that could influence future market trends and investment strategies.
- Centene Guidance Miss: Centene's full-year revenue guidance of $186.5 billion to $190.5 billion fell short of the $194.1 billion consensus, leading to a 5% drop in shares, indicating pressure in the health insurance sector.
- AI Infrastructure Stocks Surge: Companies linked to AI infrastructure, such as Lumen Technologies and Applied Digital, saw stock prices rise by at least 20%, reflecting a recovery in investor confidence after a week of selling, potentially signaling a shift in market sentiment.
- Viasat Earnings Beat: Viasat reported adjusted earnings of $0.79 per share for the third quarter, up from $0.11 a year earlier, with shares gaining about 10%, as the company anticipates double-digit operating cash flow growth in 2026, showcasing a strong business outlook.
- Roblox Optimistic Forecast: Roblox expects full-year bookings between $8.28 billion and $8.55 billion, exceeding the $7.87 billion consensus, resulting in a 12% stock increase, indicating robust performance in the online gaming market and future growth potential.
- Strong Financial Performance: Viasat reported Q3 revenue of $1.2 billion and adjusted EBITDA of $387 million, achieving a 33% EBITDA margin, with cash flow from operations at $727 million, demonstrating robust cash generation capabilities that bolster future investment potential.
- Satellite Launch Progress: CEO Mark Dankberg announced that Flight 2 is set to launch in early November with services expected to commence by May, while Flight 3 will follow shortly after, anticipated to enter service by late summer, significantly enhancing bandwidth capacity for aviation, maritime, and government SATCOM.
- Capital Efficiency Improvement: The company plans to reduce fiscal 2026 capital expenditures to between $1 billion and $1.1 billion, lowering previous guidance by $100 million to $200 million, reflecting a strategic focus on optimizing capital spending to enhance return on investment and support future growth.
- Strategic Review and Potential Separation: Management is conducting a strategic review that includes the potential separation of government and commercial businesses, contingent on successful satellite deployments, macro market trends, and achieving deleveraging and free cash flow targets, indicating a thoughtful approach to future development.
- Earnings Beat: Viasat's Q3 non-GAAP EPS of $0.79 exceeded expectations by $0.55, indicating strong profitability that may attract increased investor interest and confidence in the company's financial health.
- Revenue Miss: Despite a year-over-year revenue increase of 3.6% to $1.16 billion, the figure fell short of expectations by $10 million, reflecting intensified market competition and demand fluctuations that could impact future investment sentiment.
- Positive Stock Reaction: Following the earnings report, Viasat's shares rose by 3%, demonstrating market recognition of its profitability, which may support the company's future capital operations and strategic expansions.
- Optimistic Industry Outlook: Viasat is regarded as a leader in the satellite industry; despite facing challenges, its solid position in the high-risk satellite market suggests potential for growth through technological innovation and market expansion.









