Viasat's strong technical momentum

What happened: Viasat's (NASDAQ: VSAT) stock surged on May 28, 2022, following two significant wins. The U.S. Space Force awarded Viasat a contract to build "mini-GEO" communications satellites, worth $332.7 million. Simultaneously, Intelsat won a $105 million contract, bringing the combined value to $437.7 million. Viasat also reported record financials, including $4.9 billion in awards and a $4.1 billion backlog, driving its stock up 839% over the past year.

Market impact: This narrative impacts the aerospace and defense sector, with Viasat's strong performance driving interest in other mid-cap stocks. The company's technical momentum and recent wins could attract more investors, potentially leading to further valuation increases. However, analysts' modest revenue growth projections and Viasat's lofty valuation may temper enthusiasm.

What to watch next: Viasat's Q1 2023 earnings, scheduled for August 2, 2022, will provide insights into the company's progress on these contracts and its financial outlook. Additionally, any updates on the U.S. Space Force's satellite program and Intelsat's progress could influence Viasat's stock performance. Lastly, Viasat's stock price relative to its 50-day moving average will indicate whether the recent rally continues or if a pullback occurs.