SPECIAL REPORT The Top 7 Stocks for 2024

Flying High: 3 Stocks to Invest in the Up-and-Coming eVTOL Aircraft Sector

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  • Book a flight with these compelling eVTOL stocks.
  • Toyota (TM): Partnering with Joby Aviation, Toyota provides stable exposure to the eVTOL sector, offering investors a well-run organization with dividends.
  • Archer Aviation (ACHR): A pure-play eVTOL stock, Archer secured a $142 million U.S. Air Force order and displays promising international growth, making it a compelling choice with significant potential.
  • Blade Air Mobility (BLDE): A relative laggard among eVTOL stocks, Blade stands out with a unanimous buy rating, a low entry point, and notable Q3 sales of $71.4 million, showcasing its revenue-generating capacity.
eVTOL stocks - Flying High: 3 Stocks to Invest in the Up-and-Coming eVTOL Aircraft Sector

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If you want to try your hand at compelling innovation but are tired of researching the next big idea for artificial intelligence, you might consider electric vertical takeoff and landing or eVTOL stocks. Representing the next wave of mobility, eVTOL effectively combine the advancements undergirding helicopters, airplanes and electric vehicles.

From a social impact standpoint, eVTOLs are quiet or at least relatively quiet compared to helicopters. Thanks to the use of wing-borne lift along with lower rotor speeds, this air mobility platform could replace the incessant buzzing of helicopters over major metropolitan areas. And as the acronym implies, this brand of mobility features zero emissions.

To be fair, eVTOL stocks don’t have completely clear skies ahead. Because of their capacity issues, eVTOLs might not be as useful as traditional platforms. As well, the sector faces problems associated with any new endeavor such as regulation and infrastructure development.

Nevertheless, with EVs rapidly taking over our roadways, zero-emission air taxis might not be too far behind. Therefore, speculators may want to consider the below eVTOL stocks.

Toyota (TM)

Toyota motor corporation logo on dealership building
Source: josefkubes / Shutterstock.com

As an automotive icon, Toyota (NYSE:TM) might not immediately sound like a natural idea for eVTOL stocks. However, Toyota partners with Joby Aviation (NYSE:JOBY), a pure-play enterprise for the next-generation of air mobility services. So, why not just get JOBY stock rather than dealing with Toyota, even though the latter is the largest external shareholder of the former?

Of course, you’re more than welcome to acquire JOBY. However, after gaining about 90% since the beginning of the year, JOBY has incurred significant market volatility. Now, to be fair, in the trailing five sessions, JOBY returned almost 16% of equity value. So, it could very well be on a comeback. Nevertheless, Toyota offers a stable exposure to eVTOL stocks.

Second, as exciting as air taxis are, the sector isn’t without risks. As stated earlier, the regulatory environment – along with consumer acceptance – could represent challenges. Therefore, if eVTOLs simply don’t take off, if you own Toyota, you’re left with a well-run organization that pays dividends.

If there’s a better way to fail, I’d love to hear it.

Archer Aviation (ACHR)

Person holding mobile phone with web page of US eVTOL aircraft company Archer Aviation Inc. (ACHR) on screen with logo. Focus on center of phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

Of course, we can’t talk about eVTOL stocks without mentioning pure-play enterprises. For that, speculative investors should check out Archer Aviation (NYSE:ACHR). Despite its incredible performance this year, analysts still peg ACHR as a consensus strong buy. What’s more, the average price target lands at $8.13, implying almost 25% growth potential.

Adding to the appeal, the high-side target clocks in at $10. That’s from analysts at Cantor Fitzgerald, who reiterated their bullish assessment on ACHR in early November. If shares hit the target, that would imply about a 54% return from the time of writing. It could very well be a believable forecast.

As InvestorPlace’s Faisal Humayun stated, Archer secured a $142 million order from the U.S. Air Force. As well, the company is growing internationally, signing with various partners with an eye on conducting operations in 2026. Significantly, the air mobility specialist also commands a liquidity buffer of $600 million, which should support operations until it achieves commercialization in 2025. It’s risky because it’s already gained over 237% year-to-date. Still, the fundamentals point to more gas in the tank.

Blade Air Mobility (BLDE)

The Blade Air Mobility (BLDE) logo displayed on a smartphone screen.
Source: Wirestock Creators / Shutterstock.com

For those looking for a relative deal among eVTOL stocks, Blade Air Mobility (NASDAQ:BLDE) could be quite attractive. On paper, it admittedly appears BLDE represents the riskiest of the bunch. While other eVTOL specialists are printing returns of nearly double or more on a YTD basis, BLDE is actually below parity since the January opener.

Indeed, in the trailing 52 weeks, shares gave up over 30% of equity value. So, it’s clearly a laggard. Nevertheless, that could inspire contrarians because theoretically, BLDE isn’t as vulnerable to bag-holding concerns as its pure-play brethren. But the real catalyst is the expert opinion. Right now, shares command a unanimous buy rating among three experts. Further, the average price target stands at $8.17, implying almost 145% upside potential.

Perhaps most importantly, what distinguishes Blade Air from many of its rivals is that it’s not a pre-revenue enterprise. Conspicuously, in the third quarter, the company rang up sales of $71.4 million, up from $45.7 million in the year-ago quarter. As well, it posted net income of $300,000, which may be a small sign of things to come.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


Article printed from InvestorPlace Media, https://investorplace.com/2023/12/flying-high-3-stocks-to-invest-in-the-up-and-coming-evtol-aircraft-sector/.

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