Gilat Stock Up 23% in the Past Six Months: Will the Uptrend Continue?

Gilat Satellite Networks Ltd. GILT stock has proved resilient amid a volatile market environment with a 23.2% gain in the past six months against the Zacks Satellite and Communication industry’s the Zacks Computer and Technology sector and the S&P 500 composite’s decline of 7.6%, 15.9% and 10.6%, respectively.

It closed the last trading session at $6, down 25% from its 52-week high of $8.05. Does this recent pullback indicate a buying opportunity?

Let us discuss GILT’s prospects and determine your portfolio's best course of action.

Defense Contracts Propel Gilat’s Growth

GILT, a leading provider of satellite-based broadband services, offers advanced solutions across sectors like In-Flight Connectivity (IFC), defense and public safety. With rising global demand for defense SATCOM, driven by NGSO growth and geopolitical tensions, Gilat is well-positioned to capitalize on these trends through its deep expertise and continued investment in secure, high-performance satellite communication technologies.

Recently, Gilat announced that its defense division, Gilat Defense, secured a multimillion-dollar order from a leading global defense organization. The contract involves the supply of cutting-edge antenna technology, which will be integrated into the organization’s advanced communication systems. Also, the company announced that Gilat Defense has been awarded a significant contract to provide sustainment and support services for Satellite Transportable Terminal (STT) units used by the U.S. Department of Defense (“DoD”). The deal, which covers a base program with extension options for up to five years, is valued at up to $23 million.

Gilat Satellite Networks Ltd. Price and Consensus

Gilat Satellite Networks Ltd. price-consensus-chart | Gilat Satellite Networks Ltd. Quote

In March 2025, the company announced a new $6 million contract for its SkyEdge II-c satellite communications platform. The deal, awarded by a military organization in the Asia-Pacific region, solidifies Gilat’s market position in delivering highly secure, resilient and advanced satellite communications solutions for mission-critical defense operations. The contract highlights Gilat’s expanding footprint in the defense sector as the company continues to provide robust SATCOM solutions that enable military forces to operate efficiently across the diverse and challenging backdrop.

In February 2025, GILT announced the formation of its new Defense Division to address the increasing demand for secure government and military SATCOM solutions. Gilat Defense unifies the expertise of Gilat, Gilat DataPath and Gilat Wavestream under one umbrella to deliver end-to-end, mission-critical SATCOM solutions for military, homeland security and government agencies. In January 2025, GILT announced that its wholly owned U.S.-based subsidiary, Gilat DataPath, secured contracts exceeding $5 million. These deals, awarded by the DoD and various international defense forces, involve DKET terminals and Field Service Representative (FSR) support.

GILT’s Positive Outlook Signals Strong Growth Ahead

In the last reported quarter, the company’s net sales grew 3% year over year, driven by steady traction in the defense and IFC sectors, with a higher volume of orders and awards. Management projects 2025 revenues between $415 million and $455 million, with adjusted EBITDA expected to range from $47 million to $53 million.

As part of its growth strategy, Gilat has restructured its organization into three primary divisions effective Jan. 1, 2025. It will present financial results under three categories - Gilat Defense, Gilat Commercial and Gilat Peru. The new structure improves focus on key markets and gives investors better insight into Gilat’s business and growth opportunities.

Headwinds for Gilat

In recent years, intensifying competition within the industry has created a greater urgency for continuous innovation. At the same time, some rivals have adopted aggressive pricing strategies in an effort to gain market share, triggering a price war. These dynamics are likely to put pressure on Gilat’s profitability and overall market position.

GILT Trades at a Premium

In terms of the price/book ratio, Gilat is trading at 1.12, higher than the industry’s multiple of 0.45.

How Should Investors Play GILT Stock?

Although the company is currently facing intense competition and appears overvalued, its strong strategic initiatives and recent defense deals may drive stock growth.

The company has an average brokerage recommendation (ABR) of 1.5 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.

At present, GILT carries a Zacks Rank #3 (Hold).

Stocks to Consider From the Computer and Technology Space

Some better-ranked stocks from the broader technology space are Unity Software Inc. U, Iridium Communications Inc. IRDM and SAP SAP. U sports a Zacks Rank #1, while IRDM and SAP carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Unity Software’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 65.52%. In the last reported quarter, U delivered an earnings surprise of 14.29%. The company’s long-term earnings growth rate is 5.4%. Its shares have lost 16.7% in the past year.

Iridium’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 35.22%. In the last reported quarter, IRDM delivered an earnings surprise of 93.75%. Its shares have decreased 19.3% in the past year.

SAP’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 6.38%. In the last reported quarter, SAP delivered an earnings surprise of 12.03%. The company’s long-term earnings growth rate is 10.1%. Its shares have surged 33.2% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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