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Comtech Telecommunications Corp. (NASDAQ:CMTL) is one of the oversold tech stocks to buy now. On June 15, Comtech Telecommunications agreed to sell most of its Satellite & Space Communications (S&S) segment to Gilat Satellite Networks for $157.5 million. Expected to close in late 2026, the transaction allows Comtech to focus exclusively on its public safety technology business, which will be rebranded as Allerium.

The company will use the net cash proceeds to reduce debt and strengthen its balance sheet, alongside amendments to its credit and preferred stock agreements. By simplifying its operating model, Comtech aims to accelerate growth in recurring software and AI-enabled emergency response services, targeting a more profitable and focused financial profile.

This divestiture marks the successful conclusion of Comtech's strategic review process. Once transitioned, Allerium will prioritize the development of next-generation mission-critical solutions, moving beyond standard connectivity toward data-centric coordination for public safety agencies and mobile network operators.

Comtech Telecommunications Corp. (NASDAQ:CMTL) is a global provider of critical communications technology, operating through its Satellite and Space Communications and Allerium segments.

While we acknowledge the potential of CMTL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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