Reasons to Consider Globalstar (GSAT) as a Strong Momentum Stock: Is It Time to Buy?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2025
0mins
Source: NASDAQ.COM
Momentum Investing Overview
- Concept of Momentum Investing: This strategy involves buying stocks that are trending upwards, with the hope of selling them at even higher prices. The core idea is that once a stock establishes a trend, it is likely to continue in that direction, leading to profitable trades.
- Challenges in Defining Momentum: While momentum is a widely recognized characteristic, defining it can be complex. The Zacks Momentum Style Score helps clarify which metrics to focus on for evaluating momentum.
Globalstar (GSAT) Analysis
- Current Momentum Style Score: Globalstar has a Momentum Style Score of B, indicating strong potential for momentum investing.
- Zacks Rank: The company holds a Zacks Rank of #1 (Strong Buy), suggesting it is expected to outperform the market. Historical data shows that stocks with this ranking and a Style Score of A or B tend to perform well over the following month.
Performance Metrics
- Short-term Price Activity: GSAT shares have increased by 12.1% over the past week, significantly outperforming the Zacks Satellite and Communication industry, which rose by only 0.73%.
- Long-term Performance: Over the last three months, GSAT shares have surged by 50.4%, and they are up 59.71% over the past year, while the S&P 500 has only increased by 9.68% and 16.9%, respectively.
Trading Volume and Earnings Estimates
- Average Trading Volume: GSAT's average trading volume over the last 20 days is 754,674 shares, which is a positive indicator for momentum.
- Earnings Estimate Revisions: In the past two months, one earnings estimate for GSAT has increased, while none have decreased, raising the consensus estimate from -$0.35 to -$0.08. For the next fiscal year, one estimate has also moved upwards with no downward revisions.
Future Outlook
- Investment Recommendation: Given its strong performance metrics and positive earnings revisions, GSAT is recommended as a strong buy for investors looking for momentum stocks.
- Potential for Growth: Analysts predict significant revenue growth for Globalstar, particularly as the satellite communications industry is expected to expand, with projections of it becoming a trillion-dollar market by 2025.
Additional Insights
- Zacks Investment Research Recommendations: The article mentions a selection of five stocks with high potential for significant gains, highlighting a lesser-known satellite communications firm as a top pick, which could outperform previous successful stocks.
This analysis emphasizes Globalstar's strong momentum characteristics and potential for future growth, making it a noteworthy consideration for investors.
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Analyst Views on GSAT
Wall Street analysts forecast GSAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GSAT is 67.00 USD with a low forecast of 60.00 USD and a high forecast of 75.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 64.650
Low
60.00
Averages
67.00
High
75.00
Current: 64.650
Low
60.00
Averages
67.00
High
75.00
About GSAT
Globalstar, Inc. is an international telecom infrastructure provider. It provides mobile satellite services, including voice and data communications and wholesale capacity services through its global satellite network. Its low earth orbit (LEO) satellite constellation ensures secure data transmission for connecting and protecting assets, transmitting critical operational data, and saving lives for consumers, businesses, and government agencies across the globe. Its terrestrial spectrum, Band 53, and its 5G variant, n53, offer carriers, cable companies, and system integrators a versatile, fully licensed channel for private networks to improve customer wireless connectivity, while its XCOM RAN product offers capacity gains in dense wireless deployments. In addition to SPOT GPS messengers, it offers Internet of things (IoT) hardware and software products for tracking and monitoring assets, processing smart data at the edge, and managing analytics with cloud-based telematics solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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