Viasat Inc. (VSAT - Free Report) recently unveiled a cybersecurity software to facilitate the secured transmission of sensitive data between ships at sea and onshore facilities. With the release of the integrated Mobile Dynamic Defense (MDD) cybersecurity software, the company added new security capabilities for the U.S. and international Five Eyes naval forces.
Using a “Defense in Depth” model, which combines several layers of security functions, the integrated MDD software helps in constant monitoring and protecting critical information in end-user devices. Notably, MDD software is part of the Viasat’s comprehensive cybersecurity platform, whichanalyzescommercial and government network data at terabit levels.
The software is currently available to the naval and maritime customers in the United States, Australia, Canada, New Zealand and the United Kingdom.
Existing Business Scenario
Although Viasat’s R&D activities bode well for the long term, these weigh on its net income in the near future. Also, the company anticipates witnessing huge rise in R&D activities related to the launch of ViaSat-3 satellites that can materially impact its margins and bottom line, going forward.
Also, the company depends on the U.S. government contracts for a major part of its revenues. In the future, any additional federal budgetary pressures may lead to deeper-than-expected cuts indefensespending, which may significantly impact its business prospects. Furthermore, a shift in the government’s foreign policy may result in the termination of some major international contracts.
In the past three months, Viasat stock has lost 3.1% against the industry’s growth of 17.6% growth.
Further, the Zacks Rank #4 (Sell) company operates in a highly dynamic and competitive market, which includes stalwarts from varied industries. Hence, to combat such competitive pressure, the company has to continuously customize its network offering per needs, enhance the cost-effectiveness of its products and services, and boost the satellite data networks.
Stocks to Consider
Some better-ranked stocks from the same space are Ubiquiti Networks, Inc. (UBNT - Free Report) , Comtech Telecommunications Corp. (CMTL - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) . While Ubiquiti Networks and Comtech Telecommunications sport a Zacks Rank #1 (Strong Buy), Motorola Solutions carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ubiquiti Networks surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 8.96%.
Comtech Telecommunications outpaced estimates in each of the preceding four quarters, with an average earnings surprise of 136.02%.
Motorola Solutions exceeded estimates in each of the preceding four quarters, with an average positive earnings surprise of 11.81%.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>