AST SpaceMobile, Inc. ASTS has gained a stellar 795% over the past year compared with the industry’s growth of 45.1%. Earnings estimates for the current fiscal have increased 48.7% over the past year, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #3 (Hold) stock appears to be an enticing investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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ASTS Rides on Portfolio Strength

This Midland, TX-based broadband service provider is reportedly developing the first and only global cellular broadband network in space based on its extensive IP and patent portfolio. With a diverse portfolio of more than 3,400 patent and patent-pending claims worldwide for the direct-to-cell satellite ecosystem from space to Earth, AST SpaceMobile’s remarkable transformation in recent months offers a competitive edge across the broader technology market.

AST SpaceMobile has completed the launch of its first five commercial satellites, marking a key advancement in developing a space-based mobile network infrastructure. Dubbed Bluebird, these satellites are equipped with the largest-ever commercial communications arrays spanning 693 square feet. They are deployed in low Earth orbit to potentially offer non-continuous service across the United States using more than 5,600 cells within the premium low-band spectrum. 

This achievement follows the success of AST SpaceMobile's in-orbit BlueWalker 3 satellite. It marks significant progress in the company's mission to create a space-based cellular broadband network that can directly link with mobile devices, eliminating the need for ground-based infrastructure. By expanding its connectivity to remote areas, the company aims to ensure that more people have access to vital communication services.

Mid-Band Spectrum Assets to Buoy ASTS

Last month, AST SpaceMobile inked an agreement with Ligado Networks for spectrum usage rights for more than 80 years. The deal will enable ASTS to get access to up to 40 MHz of Ligado’s L-band mobile satellite spectrum in the United States and Canada and an additional 5 MHz in the 1670-1675 MHz band in the United States.   

The transaction, subject to customary closing conditions and regulatory approvals for the proposed use of the spectrum, is likely to help AST SpaceMobile eliminate connectivity gaps for ubiquitous space-based network connectivity. This, in turn, will enable ASTS to support up to 10,000 MHz of processing bandwidth per satellite in the future, with data transmission speeds of up to 120 Mbps across a space-based cellular broadband network accessible to everyday smartphones.

Stocks to Consider

Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy) at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista delivered an earnings surprise of 14.8%, on average, in the trailing four quarters. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Juniper Networks Inc. JNPR, currently carrying a Zacks Rank #2, is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help to build network infrastructure used for services and applications based on single Internet protocol network worldwide. Juniper offers a broad range of routing, switching and security products. Juniper has a long-term earnings growth expectation of 12.4%. 

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 15%. IDCC is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. The company designs and develops a whole range of advanced technology solutions for use in digital cellular as well as wireless 3G, 4G, and IEEE 802-related products and networks.

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