Flying car stocks are the latest trend in transportation. These vehicles have a variety of uses, and it might not be long until we see them in our everyday lives. The problem, though is that not all of these companies are created equal. Some may be too risky to even consider, while others simply don’t leave you feeling you got a good deal by scooping up shares.
Fortunately, there are undervalued flying car stocks that have reached pivotal inflection levels. These inflection levels, or entry points, suggest that the stock has more upside potential to go. The companies discussed in this article are at these points due to their fundamentals, technicals, or due to having a strong competitive position.
So here are the best flying stocks you should consider buying in September.
Flying Car Stocks: Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) has entered into agreements with the U.S. Air Force, potentially worth up to $142 million. Further, the company’s collaboration with Boeing (NYSE:BA) to develop autonomous planes and the FAA’s approval for its Midnight aircraft to begin test flights further solidify its undervalued position.
One can also infer ACHR’s undervalued nature due to its high levels of institutional investment. Notably, Cathie Wood’s ARK Invest increased its stake in the company. ARK’s various ETFs purchased a combined total of over 232,000 shares. The stock is also keeping above two important trendlines on the daily charts. This means that there’s an inferred upside from the present levels, thus making it one of those flying car stocks to buy.
Recent trading volumes are also higher than average, which suggests that bulls still have an appetite for pushing this stock to higher price levels.
Embraer (ERJ)
Embraer (NYSE:ERJ), a well-established aircraft manufacturer, has ventured into the flying car space with its subsidiary, Eve. The company has already secured letters of intent for aircraft deliveries to Norwegian carrier Widerøe and Nordic Aviation Capital.
The company has set its sights on establishing a flying taxi factory in San Paulo by 2026. The envisioned vehicle, bearing similarities to a helicopter, has already piqued interest, with 3,000 preorders in place.
One thing I like the most about ERJ stock is that, unlike its peers, ERJ posts consistent financial performance. The company reported an adjusted income of 32 cents per American Depository Share (ADS) for Q2 2023. This surpassed some analyst’s consensus estimate of 12 cents per ADS by a significant 166.7%. The earnings were also higher than the 25 cents per ADS reported in the same quarter of the previous year.
Flying Car Stocks: Lilium (LILM)
Lilium (NASDAQ:LILM) stands out with its unique jet-powered flying car design. The company is targeting regional air mobility, bridging the gap between short intra-city commutes and longer airline flights.
Like other stocks on this list, there have been some positive developments for LILM stock, too. The company announced an agreement with the Chinese helicopter transportation company Heli-Eastern (also known as Shenzhen Eastern General Aviation). Under this agreement, Heli-Eastern has committed to purchasing 100 all-electric vertical take-off and landing Lilium jets.
In addition to the Heli-Eastern deal, Lilium has secured a partnership with the Bao’an District of Shenzhen. This partnership aims to provide flying car services in the Greater Bay Area.
With these promising partnerships considered, LILM stock definitely makes the list of flying car stocks to buy.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
