VSAT to Deploy In-Flight Connectivity for Riyadh Air: Stock to Gain?

Viasat, Inc. VSAT recently announced that Riyadh Air has opted to deploy Viasat’s high-speed in-flight connectivity (IFC) to enhance passenger’s experience. Riyadh Air, the newly established premium international airline based in Saudi Arabia aims to equip its fleet of Boeing 787 Dreamliner Aircraft with Viasat’s IFC solutions.Air passengers’ numbers are rising steadily, and it is expected to rise at a substantial rate in the upcoming years. Amid this backdrop, a passenger experience survey conducted by Viasat in 2023 revealed that 83% of the passengers would be more likely to rebook an airline that provides consistent WiFi services. In today’s digital-first age, internet connectivity has become an essential part of our daily life. Passengers are increasingly preferred to stay connected for both personal and professional reasons.Recognizing this trend, airlines are steadily increasing investment in IFC technologies to increase guests’ convenience and enjoyment during travel and gain a competitive edge. This presents a solid growth opportunity for Viasat.In the current venture with Riyadh Air, Viasat will offer its Ka-band satellite technology and multi-orbit solution capabilities to offer guests seamless connectivity during travel. The technology will support streaming, gaming, social media apps and more from the comfort of the seats. Moreover, business professionals will be able to work on projects, attend virtual meetings and answer emails while in transit. This will ensure a smooth, hassle-free experience onboard for commuters.Will This Development Drive VSAT’s Share Performance?Other than the ticket price, free onboard WiFi has become one major factor in choosing an airline. Per Business Research Insights, the in-flight WiFi service market is expected to witness a 7.38% compound annual growth rate (CAGR) from 2024 to 2032 period. Viasat is expected to gain substantially from this emerging market trend. Several other airlines, including Korean Air, the South Korean national carrier STARLUX and Royal Jordanian Airlines, have already deployed Visat IFC across their fleet.VSAT’s Stock Price PerformanceShares of VSAT have lost 44.8% over the past year against the industry’s 40.3% growth.Image Source: Zacks Investment ResearchVSAT’s Zacks Rank and Other Key PicksViasat currently carries a Zacks Rank #2 (Buy).InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. InterDigital boasts a comprehensive portfolio of more than 33,000 granted patents and applications. The company witnessed an exceptional year in innovation in 2024, with more than 5,000 new patent filings worldwide.CommScope Holding Company, Inc. COMM sports a Zacks Rank #1 at present. Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. CommScope has an established global manufacturing and distribution footprint. Its strategically located manufacturing hubs optimize product delivery timelines.United States Cellular Corporation USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United States Cellular Corporation (USM): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Viasat Inc. (VSAT): Free Stock Analysis Report CommScope Holding Company, Inc. (COMM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks