Iridium: No Longer A Falling Knife, And We Have Growth Catalysts Ahead (Upgrade)

2026-02-27 11:05:27 ET

Introduction

When industry refers to a stock as a "falling knife," it's usually because the stock has deteriorating fundamentals that the market is aware of, resulting in the stock repricing lower on a consistent basis. Stocks like these don't normally rerate higher unless a pivotal catalytic event occurs. This isn't the case with Iridium Communications ( IRDM ); the firm has solid fundamentals with management that has a propensity to return value to shareholders; however, the stock has been a laggard for multiple years now, which made me label it a "falling knife" in my previous article . To give you a perspective of how disappointing the price performance has been, just take a look at the YoY performance chart of IRDM vs. peers and the S&P 500. Iridium lost 22% in value, underperforming the 18% return from SPY, while ViaSat, Globalstar, and EchoStar returned 449.7%, 224.2%, and 277.6%, respectively. ...

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