The Zacks Analyst Blog Highlights SpaceX, Verizon Communications and AT&T
For Immediate Release
Chicago, IL – July 31, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Space Exploration Technologies Corp. SPCX, Verizon Communications Inc. VZ and AT&T Inc. T.
Here are highlights from Thursday’s Analyst Blog:
Is SpaceX Stock a Portfolio Must-Have Ahead of Earnings?
Space Exploration Technologies Corp. is scheduled to report second-quarter 2026 earnings after the closing bell on Aug. 4. The Zacks Consensus Estimate for revenues and loss is pegged at $6.72 billion and 26 cents per share, respectively. Earnings estimates for SpaceX for 2026 and 2027 have witnessed no revision in the past seven days.
Earnings Surprise History
This is the Elon Musk-owned aerospace and communications behemoth’s first earnings report since its debut as a publicly traded company on June 12.
Earnings Whispers
Our proven model does not predict an earnings beat for SpaceX for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SpaceX currently has an Earnings ESP of -4.26% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping the Upcoming Results
SpaceX enjoyed a spectacular debut following its IPO. Strong investor demand, limited share availability and optimism surrounding the company's long-term growth prospects fueled a sharp rally during the first few weeks of trading. However, as the initial euphoria faded, investors began reassessing the company's valuation based on earnings potential rather than future expectations. The result has been a broad-based correction as early investors locked in gains.
The company completed a successful Starship test mission during the quarter, achieving several important technical milestones, including satellite deployment and in-space engine restart capabilities. These developments reinforce SpaceX's technological leadership in reusable launch systems.
During the quarter, SpaceX issued senior unsecured notes to improve its liquidity and repay a $20 billion bridge loan taken to fund the acquisition and merger with AI startup firm xAI. However, this led to uncertainty among investors amid concerns about heavy capital expenditure strains and governance issues, particularly after a $60-billion deal to acquire Anysphere.
The all-stock deal for Anysphere, aimed at gaining a firmer footing in the enterprise AI market with the rapidly growing AI coding assistant Cursor, fanned concerns about dilution of existing shareholders. It also led to fears that an aggressive, hyper-expensive expansion into AI infrastructure could weigh on long-term profitability. These are likely to be reflected in the impending quarterly results.
SpaceX continues to trade at a premium valuation compared with most aerospace and technology peers. The stock's initial rally reflected expectations for rapid growth in Starlink, commercial launch services and future space exploration initiatives. While these businesses continue to offer significant long-term opportunities, the valuation had left little margin for execution missteps.
Price Performance
SpaceX has declined 16.6% since its IPO, underperforming the industry’s growth of 85.3%. It has lagged peers like Verizon Communications Inc. and AT&T Inc. over this period. While Verizon gained 0.6%, AT&T is up 4.1%.
Investment Consideration
SpaceX remains uniquely positioned to capitalize on several long-term secular growth trends, including satellite broadband, reusable launch systems, government space programs and next-generation communications infrastructure. The company has transformed the launch industry through its reusable Falcon 9 rockets, significantly reducing launch costs and increasing mission frequency. SpaceX now conducts more launches annually than any of its global competitors, giving it a commanding share of the commercial launch market.
However, near-term risks remain. Valuation concerns, potential insider selling following the lockup expiration and uncertainty surrounding the company's first few earnings reports could continue to weigh on the stock. SpaceX's more than 50% decline from its June high appears to reflect a normalization in valuation rather than a significant deterioration in its long-term business prospects. While the recent correction has made the stock considerably more attractive than it was just a few weeks ago, investors may prefer to wait for greater clarity from the company's inaugural earnings report before becoming more aggressive.
End Note
SpaceX continues to execute on multiple growth fronts, including launch services, satellite communications and next-generation space transportation. The combination of industry leadership, recurring revenue growth from Starlink and significant long-term optionality through Starship makes the company one of the most compelling stories in the global innovation landscape.
While valuation concerns and execution risks warrant attention, SpaceX appears well-positioned to benefit from the secular growth of the space economy. For investors seeking exposure to disruptive technologies and long-term growth themes, SpaceX may still have room to run.
Long-term growth investors with a higher risk tolerance may view the current weakness as an opportunity to gradually accumulate shares. More conservative investors, however, may find it prudent to remain on the sidelines until the stock establishes a firmer bottom and earnings expectations become clearer.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).
