We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EchoStar Stock Up 627% in a Year: Should Investors Buy, Hold or Fold?
Read MoreHide Full Article
Key Takeaways
EchoStar agreed on spectrum deals with AT&T and SpaceX worth billions, supporting finances.
EchoStar's Wireless and Broadband units boosted OIBDA, helping narrow first-quarter net losses.
SATS added about 16,000 wireless subscribers, aided by retention efforts and value-added services.
EchoStar Corporation (SATS - Free Report) stock has soared 627.2% in the past year, outperforming the Zacks Satellite and Communication industry’s growth of 336.6%. The S&P 500 composite and Zacks Computer & Technology sector have risen 28.3% and 44.4%, respectively, over the same time frame.
SATS has also outperformed its peers, Gilat Satellite Networks Ltd. (GILT - Free Report) , Planet Labs PBC (PL - Free Report) and Iridium Communications (IRDM - Free Report) . GILT, PL and IRDM have climbed 140.8%, 452.7% and 70.5%, respectively, in the past year.
Image Source: Zacks Investment Research
However, shares of EchoStar lost 10% in the past month. The company recently reported first-quarter 2026 results, wherein it posted a diluted net loss of 51 cents. The company’s first-quarter revenues declined 5.2% year over year.
Following the company’s results, investors may wonder whether SATS has upside or if expectations have outpaced fundamentals. Let’s unpack the company’s fundamentals and challenges to ascertain the best course of action.
Key Growth Catalysts for EchoStar
EchoStar is advancing from strategic transactions involving spectrum assets that are expected to strengthen its financial position. The company has agreements to sell certain spectrum licenses to AT&T for $22.65 billion in cash, subject to conditions and adjustments, and has also entered into transactions with SpaceX valued at approximately $20 billion, including cash and SpaceX equity consideration. These transactions also contemplate debt repayment and additional commercial arrangements related to Starlink services and customer referral programs.
EchoStar's existing portfolio spans Pay-TV, Wireless, Broadband and Satellite Services, and enterprise and government connectivity businesses. The company provides services through brands including Boost Mobile, Sling TV, DISH TV, Hughes and HughesNet, serving consumer, enterprise, operator and government customers worldwide.
Notably, the company is gaining from improvements in its Wireless and Broadband and Satellite Services businesses, which supported overall operating performance during the first quarter of 2026. The company’s Wireless segment generated OIBDA of $13.7 million compared with a loss of $73.7 million in the prior-year quarter, while Broadband and Satellite Services OIBDA increased to $94.1 million from $85.7 million a year earlier. Consolidated OIBDA rose to $559.4 million from $400.2 million, and adjusted OIBDA increased to $493.3 million from $400.2 million in the prior-year period. Net loss attributable to EchoStar also narrowed to $146.9 million from $202.7 million in the first quarter of 2025.
EchoStar is also gaining from continued growth and retention efforts in its Wireless business. The company ended the quarter with 7.53 million wireless subscribers, reflecting a net increase of approximately 16,000 subscribers during the first quarter. Wireless subscriber performance was supported by the company’s focus on acquiring higher-quality subscribers, retention initiatives, competitive offers and promotions, and increased sales of value-added services, which also contributed to higher wireless average revenue per user.
Image Source: Zacks Investment Research
However, continued pressure on the company’s subscriber bases in Pay-TV and broadband services remains a concern. During the first quarter of 2026, the company lost approximately 366,000 pay-TV subscribers and 58,000 broadband subscribers, reflecting the impact of competitive pressures, cord-cutting trends, evolving consumer preferences and competition from streaming platforms. Moreover, increased competition from satellite-based and alternative broadband technologies poses additional challenges.
SATS’ Valuation
SATS trades at a forward 12-month price-to-sales (P/S) of 2.35X, below the industry’s 3.28X. GILT, PL and IRDM trade at a forward 12-month P/S of 2X, 23.36X and 5.52X, respectively.
Image Source: Zacks Investment Research
SATS’ Estimates
The Zacks Consensus Estimate for SATS’ earnings for 2026 has been unchanged over the past 30 days.
Image Source: Zacks Investment Research
Should You Buy or Hold SATS Stock Now?
Currently carrying a Zacks Rank #2 (Buy), EchoStar appears to be a compelling investment opportunity at the moment.
View the Zacks #1 Rank List
Image: Bigstock
EchoStar Stock Up 627% in a Year: Should Investors Buy, Hold or Fold?
Key Takeaways
EchoStar Corporation (SATS - Free Report) stock has soared 627.2% in the past year, outperforming the Zacks Satellite and Communication industry’s growth of 336.6%. The S&P 500 composite and Zacks Computer & Technology sector have risen 28.3% and 44.4%, respectively, over the same time frame.
SATS has also outperformed its peers, Gilat Satellite Networks Ltd. (GILT - Free Report) , Planet Labs PBC (PL - Free Report) and Iridium Communications (IRDM - Free Report) . GILT, PL and IRDM have climbed 140.8%, 452.7% and 70.5%, respectively, in the past year.
Image Source: Zacks Investment Research
However, shares of EchoStar lost 10% in the past month. The company recently reported first-quarter 2026 results, wherein it posted a diluted net loss of 51 cents. The company’s first-quarter revenues declined 5.2% year over year.
Following the company’s results, investors may wonder whether SATS has upside or if expectations have outpaced fundamentals. Let’s unpack the company’s fundamentals and challenges to ascertain the best course of action.
Key Growth Catalysts for EchoStar
EchoStar is advancing from strategic transactions involving spectrum assets that are expected to strengthen its financial position. The company has agreements to sell certain spectrum licenses to AT&T for $22.65 billion in cash, subject to conditions and adjustments, and has also entered into transactions with SpaceX valued at approximately $20 billion, including cash and SpaceX equity consideration. These transactions also contemplate debt repayment and additional commercial arrangements related to Starlink services and customer referral programs.
EchoStar's existing portfolio spans Pay-TV, Wireless, Broadband and Satellite Services, and enterprise and government connectivity businesses. The company provides services through brands including Boost Mobile, Sling TV, DISH TV, Hughes and HughesNet, serving consumer, enterprise, operator and government customers worldwide.
Notably, the company is gaining from improvements in its Wireless and Broadband and Satellite Services businesses, which supported overall operating performance during the first quarter of 2026. The company’s Wireless segment generated OIBDA of $13.7 million compared with a loss of $73.7 million in the prior-year quarter, while Broadband and Satellite Services OIBDA increased to $94.1 million from $85.7 million a year earlier. Consolidated OIBDA rose to $559.4 million from $400.2 million, and adjusted OIBDA increased to $493.3 million from $400.2 million in the prior-year period. Net loss attributable to EchoStar also narrowed to $146.9 million from $202.7 million in the first quarter of 2025.
EchoStar is also gaining from continued growth and retention efforts in its Wireless business. The company ended the quarter with 7.53 million wireless subscribers, reflecting a net increase of approximately 16,000 subscribers during the first quarter. Wireless subscriber performance was supported by the company’s focus on acquiring higher-quality subscribers, retention initiatives, competitive offers and promotions, and increased sales of value-added services, which also contributed to higher wireless average revenue per user.
Image Source: Zacks Investment Research
However, continued pressure on the company’s subscriber bases in Pay-TV and broadband services remains a concern. During the first quarter of 2026, the company lost approximately 366,000 pay-TV subscribers and 58,000 broadband subscribers, reflecting the impact of competitive pressures, cord-cutting trends, evolving consumer preferences and competition from streaming platforms. Moreover, increased competition from satellite-based and alternative broadband technologies poses additional challenges.
SATS’ Valuation
SATS trades at a forward 12-month price-to-sales (P/S) of 2.35X, below the industry’s 3.28X. GILT, PL and IRDM trade at a forward 12-month P/S of 2X, 23.36X and 5.52X, respectively.
Image Source: Zacks Investment Research
SATS’ Estimates
The Zacks Consensus Estimate for SATS’ earnings for 2026 has been unchanged over the past 30 days.
Image Source: Zacks Investment Research
Should You Buy or Hold SATS Stock Now?
Currently carrying a Zacks Rank #2 (Buy), EchoStar appears to be a compelling investment opportunity at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.