Flying car stocks may have been dismissed even a few years ago as risky fantasies, but today they’re lifting off.
These companies are pioneering today’s future of transportation. Not just an expensive hobby. These vehicles have utility. From emergency services to medical evacuations to cargo and delivery.
But perhaps what’s best about these flying car stocks today is that they can be bought up at attractive entry points. Some are undervalued because of mis-pricing while others are below their long-term inflection points.
Either way, investors like you can scoop up these undervalued shares at a bargain.
So here are the best flying car stocks you should consider adding to your portfolio.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is a pure-play flying car industry stock. This electric VTOL company has strong government backing.
It has a contract with the U.S. Air Force and plans to deliver its first eVTOL to a customer in 2024.
There’s a good reason to consider that JOBY stock is undervalued. It was recently ranked as the most promising project in the Urban Air Mobility market by the Advanced Air Mobility Reality Index (AAM Reality Index) from SMG Consulting.
The index, updated monthly, gave Joby a score of 8.7 out of 10. The ranking criteria consider factors like funding, leadership team, technology readiness, certification progress, and production readiness.
Another reason is that JOBY has no long-term debt and trades below the analyst consensus price target of $8.80. Its performance year to date has been stellar, gaining 117.31%. It has continued to trade at a stable trendline since August and there’s upside momentum, which suggests a higher stock price could soon be on the cards.
Xpeng (XPEV)
Xpeng (NYSE:XPEV), a Chinese automaker known for manufacturing electric cars since 2017, is making strides in the flying car market. The company’s subsidiary, Xpeng Aeroht, is Asia’s largest flying car company.
According to Barron’s XPEV stock has gained traction on Wall Street, with BofA Securities analyst Ming Hsun Lee upgrading it to “Buy” from “Hold” and setting a price target of $22, up from $16.30.
This optimism stems from a $700 million investment by Volkswagen. This kind of institutional investment is a boon for startups like XPEV.
On the technicals, XPEV shows a clear bullish bias. It trades above its long-term moving averages, in addition to there being a strong linear regression channel to the upside. Its price-to-sales (P/S) ratio stands at only 5.60, making it a relative bargain compared with other flying car stocks.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) offers a similar profile to Joby Aviation. The company is currently losing money but has developed significant relationships in the industry.
ACHR stock has seen significant investments from major players like Boeing (NYSE:BA) and United Airlines (NASDAQ:UAL). The company, aiming to transform air travel, has caught the attention of celebrity investor Cathie Wood, who bought more than $30 million in shares in August.
Sometimes, this institutional investment is enough for us to think a stock is undervalued. I think the case holds true for ACHR as one of those best flying car stocks. The thesis is made clearer when one also examines its other valuation and financial ratios and technicals.
Wall Street gave ACHR stock a $8.90 price target. Also, over the long term, it’s also making higher highs and higher lows, which is a classic tell-tale case of a stock experiencing strong momentum. With these factors considered, it’s clear that this bullish thesis stands up to scrutiny.
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
