GILT: 2 Cheap Networking Stocks Under $10 to Buy Now: Gilat Satellite and PCTEL

The networking industry has thrived during the COVID-19 pandemic, due to its heavy use in the burgeoning remote work culture. This trend is likely to continue as the rapid digitization of virtually every industry and the global rollout of 5G is expected to significantly boost data usage in the long term. Despite the current underperformance of the global technology sector, due, among other things, to fears of impending interest rate hikes, the networking industry should generate solid returns in the coming quarters.

In a highly complex, data-driven world characterized by rapid digitalization, this segment should offer strong returns to its investors. Additionally, the Biden administration’s infrastructure bill, passed last fall, is expected to support innovations in the networking industry. According to Statista, revenue from the Network Infrastructure segment is expected to reach $197.39 billion in 2022.

In this context, we believe it is wise to bet on quality but inexpensive networking stock Gilat Satellite Networks Ltd. (GOLDEN) and PCTEL, Inc. (PCTI), which are currently trading below $10.

Gilat Satellite Networks Ltd. (GOLDEN)

Headquartered in Petah Tikva, Israel, GILT, together with its subsidiaries, provides satellite broadband communications solutions and services in Israel and around the world. It works via fixed networks; mobility solutions; and the Land Infrastructure Projects segments.

On February 8, 2022, GILT announced the expansion of its strategic partnership with SES. SES has selected Gilat’s SkyEdge IV platform to operate its SES-17 satellite. Amir Yafe, Vice President of Mobility and Global Accounts, GILT, said, “We are delighted and proud to be working with our partner, SES, to support their multi-orbit network, including the O3b mPOWER constellation, SES-17 and other satellites as they are launched. The integration of SkyEdge IV with SES’s ARC system ensures spatial and terrestrial coordination and unified operation, forming a resilient and secure network.

GILT’s revenue increased 57.8% year-over-year to $67.27 million for the fourth quarter ended December 31, 2021. Its non-GAAP net income was $5 $.89 million, compared to a loss of $1.91 million in the prior period. Additionally, its non-GAAP EPS was $0.10, compared to a loss of $0.03 per share in the prior period.

Stock is 1.55x and 1.86x forward respectively EV/S and P/S are below industry averages of 3.65x and 3.47x.

Analysts expect GILT’s revenue to be $64.80 million for the period ending June 2022, representing a 13.9% year-over-year increase. Over the past month, the stock has gained 10.4% to close the trading session at $8.52.

Under the POWR Rankings, GILT has a B rating for Sentiment. POWR ratings rate stocks on 118 separate factors, each with its own weighting.

In category B Technology – Communication/Networking industry, GILT is ranked #28 out of 56 stocks. Click on here to see additional ratings for Growth, Value, Momentum, Stability, and Quality for GILT.


PCTI, together with its subsidiaries, provides industrial Internet of Things (IoT) devices, antenna systems, and test and measurement solutions worldwide. It operates in three segments: Enterprise Wireless, Intelligent Transportation and Industrial IoT.

On November 4, 2021, David Neumann, CEO of PCTI, said, “Demand for our products remains strong, as evidenced by a further sequential increase in orders. We continue to invest in exciting new 5G products including the Gflex™ scanner receiver, new 5G/IoT antenna platforms and industrial IoT devices.

PCTI’s revenue increased 18.4% year-on-year to $22.41 million for its fiscal third quarter, ended September 30, 2021. The company’s gross profit was $10.25 million. dollars, up 7.1% year-on-year. Its cash and cash equivalents were $9.77 million for the period ended September 30, 2021, compared to $5.76 million for the period ended December 31, 2020.

The stock’s respective forward EV/S and P/S of 0.75x and 1.08x are below the industry averages of 3.65x and 3.47.

Analysts expect PCTI’s revenue to grow 12.7% year-over-year to $96.7 million in its fiscal 2022. Its EPS is also expected to rise 10% from year over the next five years. It has exceeded EPS estimates in three of the last four quarters. It closed the last trading session at $5.16.

PCTI’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, indicating a buy in our proprietary rating system.

PCTI has an A rating for value and sentiment. Within the Technology – Communication/Networking industry, it is ranked #6 out of 55 stocks. Click on here to see additional POWR ratings for Growth, Momentum, Stability, and Quality for PCTI.

GILT shares were trading at $8.31 per share on Tuesday morning, down $0.21 (-2.46%). Year-to-date, GILT has gained 17.54%, compared to a -9.11% rise in the benchmark S&P 500 over the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions with her insightful commentary. Continued…

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