Why Globalstar (GSAT) Stock Continues To Underperform?
3:53 am Wednesday, July 28th, 2021
All investors are always on the lookout for stocks that might have a massive upside in the long terms and one of the stocks that could fit the bill, as it were, is the Globalstar (NYSEAMERICAN:GSAT) stock. The company is known for being a specialist in satellite communications. The Globalstar stock is interesting for many investors at this point since the company is not only involved in a fair niche industry but it also happens to be a leading operator in that industry.
Additionally, the nature of the company’s business makes it possible for Globalstar to maybe become a global corporation. Despite all that, the stock still remains at a remarkably low level, and hence, it might be a good idea for investors to perhaps look into the company a bit more closely.
One of the most important things to point out about Globalstar is that the company is now at a stage at which it is recording meaningful growth. In this regard, it might be interesting to note that from 2016 through to 2020, the company recorded a CAGR or compounded annual growth rate in terms of EBITDA of 20%.
That indicates the possibility of further growth in the years to come and experts believe that the satellite communications industry at large is at the cusp of rapid expansion. Globalstar also noted that the global IoT or Internet of Things industry is expected to be worth as much as $2.5 billion by 2027 and that is another industry that could help with the company’s expansion. Investors could do well to keep an eye on the stock at this point.
