While the bank crisis shuts down Silicon Valley Bank parent SVB Financial and punishes Charles Schwab, satellite communications leader Iridium Communications is signaling strength. Weathering this terrestrial storm, Iridium stock continues to orbit a buy zone while landing a spot on IBD Leaderboard.
With an 86 Composite Rating, Iridium stock earns top billing in the Telecom Services-Wireless industry group, which ranks a lowly No. 130 out of the 197 groups IBD tracks. Fellow telecom leaders include Spok, T-Mobile US and US Cellular.
As Iridium stock bounces above its 50-day moving average, TMUS stock is testing its 200-day line. Meanwhile, health care communications-focused Spok finds support at its 21-day exponential moving average after soaring from a breakout last month.
Profitability remains sporadic for Iridium, but revenue has strengthened in recent quarters. Most notably, Q4 2022 sales jumped 24% year over year, vs. 6% growth in Q4 2021.
Qualcomm Partnership Can 'Dramatically Expand' Reach
Commenting on Q4 and 2022 results, Iridium CEO Matt Desch noted how a partnership with Qualcomm offers Iridium expanding marketing opportunities. Desch said, "It's exciting to unveil our partnership with Qualcomm that can dramatically expand the reach of our network to new consumer smartphones using the Snapdragon Satellite platform."
He noted that the new platform should be available later this year. A successful deployment will cement Iridium's reputation as a large player in the emerging satellite direct-to-device market. In addition, the collaboration should also establish a profitable route to future consumer applications.
Iridium Stock: Covering The Cloud With Amazon
Headquartered in McLean, Va., Iridium is the only mobile voice and data satellite communications network that spans the entire globe.
In 2019, the company completed a generational upgrade of its satellite network and launched its new specialty broadband service. Iridium Certus utilizes the highest-speed, weather-resilient L-band connectivity and is the only true global mobile satellite service on the market.
Through Iridium CloudConnect, the satellite leader works with Amazon Web Services to provide developer tools in a communications platform that manages connected devices on a global scale, even on an Arctic expedition.
ESG Credentials: Iridium Connects With National Geographic
Last month, Iridium announced a partnership with National Geographic Society to support research and exploration. As part of this program, NGS' Exploration Technology Lab is now a specially recognized, value-added developer of Iridium Connected devices.
The partnership focuses on deploying breakthrough systems to accelerate the exploration and understanding of the globe's natural resources, climate change and cultural heritage.
Iridium Stock Launches Breakout; Finds Support
Iridium stock soared out of a flat base in strong volume to kick off 2023, well ahead of the Feb. 16 earnings release. It hit a new high, pulled back and found support into February, bouncing powerfully off its 50-day line after the release.
IRDM stumbled once again as market indexes came under pressure but has found support at its 50-day benchmark, at least for now.
As the SVB Financial shutdown stoked another financial crisis and severe drops in stocks like SCHW, Iridium's relative strength line actually headed higher Monday.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
