ViaSat (VSAT) is a Great Momentum Stock: Should You Buy?

ViaSat (VSAT) has been identified as a strong momentum stock, receiving a Zacks Momentum Style Score of 'B' and a #2 (Buy) Rank. This classification is underpinned by significant recent price appreciation, with shares rising 137.01% over the past quarter and 138.86% over the last year, substantially outperforming the S&P 500. Additionally, the company has experienced positive earnings estimate revisions, with the full-year consensus estimate increasing from $0.06 to $1.69 in 60 days, indicating potential for near-term outperformance based on Zacks' research.

Analysis

ViaSat (VSAT) has been identified as a stock with strong momentum characteristics, substantiated by both its price performance and positive shifts in analyst earnings estimates. The company holds a Zacks Rank of #2 (Buy) and a Momentum Style Score of B. Its share price has demonstrated significant outperformance, rising 137.01% over the past quarter and 138.86% over the last year, decisively outpacing the S&P 500's respective gains of 9.25% and 18.95%. On a monthly basis, the stock's 12.73% gain also exceeded the 10.27% increase of the Zacks Wireless Equipment industry. Fundamentally, this momentum is underpinned by a material upward revision in earnings expectations. Over the past 60 days, the full-year consensus earnings per share estimate for VSAT has surged from $0.06 to $1.69, following two upward estimate revisions with no countervailing downward revisions. This positive analyst sentiment extends to the next fiscal year, indicating a strengthening outlook on the company's profitability and providing a fundamental basis for the observed price trend.

Key Decisions for Investors

• Given the stock's powerful price momentum and the Zacks #2 (Buy) rating, investors with a momentum-based strategy should consider VSAT for potential near-term outperformance.
• The primary justification for the bullish outlook is the dramatic upward revision in consensus earnings estimates; therefore, it is critical to monitor for any future analyst downgrades, which could serve as a leading indicator of a trend reversal.
• Following the stock's 137% rise in the last quarter, investors should be cautious of potential volatility and look for signs of trend exhaustion, such as a price decline on trading volume that is significantly above the 20-day average of approximately 3.95 million shares.