More than a decade has elapsed since the conception of hyperloop transportation entered the public domain. This innovative and technologically advanced concept encountered skepticism from investors and faced significant challenges during its implementation.
However, progress in this domain has remained steadfast. The initial shareholders of hyperloop stocks will hold in their hands a transportation method for passengers and cargo that promises to be more economical than road vehicles and faster than the majority of cargo aircraft.
The potential for creating an alternative to the four primary modes of transportation is so promising that private companies in this sector limit access to a broader range of investors for their projects.
Nevertheless, it is possible to engage indirectly in the advancements of hyperloop technology.
The creation of such structures from scratch is possible only with the participation of companies specializing in modern lightweight and strong materials, vacuum systems, high-energy-density batteries and aerospace technologies. Visionary investors are already focusing on engineering and consulting firms capable of executing projects of this magnitude.
AECOM (ACM)
Ultra-fast transportation requires planning, architectural and engineering design to build complex infrastructure. AECOM (NYSE:ACM) can handle global construction and energy projects, which is best suited for hyperloop projects.
The opening of a network of stations for such a system may take time, but the company is catching the eye right now. A “Buy” consensus rating from eight rating firms is the best evidence of this.
ACM’s almost four-fold increase in price since 2020 may be alarming to conservative investors, but the winning streak continues. Most analysts are inclined to assume that the stock’s price target is above $100 and market sentiment will be bullish.
Institutional investors have been highly appreciative of the prospects of hyperloop stocks and are enthusiastic about working with AECOM, as they collectively own 85.41% of the shares. Financial giants such as BNP Paribas Asset Management Holding S.A. and Quent Capital LLC have increased their position, which demonstrates their confidence in ACM’s future.
Bombardier (BBD-B)
Hyperloop technologies are at the intersection of many fields, and the aerospace industry is a significant beneficiary of their implementation. Bombardier (TSE:BBD-B) has been engaged in transportation equipment for more than a century and has a market capitalization of $6.81 billion.
The company’s aircraft structural components and engineering services have made it a global name, and the opening of a new market could take the company above its 2000-2001 peak.
Bombardier’s commitment to innovation and countless instances of adapting to market challenges could lead BBD-B to the top hyperloop stocks shortly.
In the spring, the stock showed a 59% rise in 30 days and is now accumulating strength for the next jump. The 52-week range of $39.87 – $97.86 shows the strength of the uptrend, which intensified in April-May 2024.
Since the end of 2020, BBD-B has shown an example of how high-tech projects can be profitable not only in the AI sector. During this period, the stock has risen from $7 to $95, which means a 13-fold increase.
Analysts’ estimates point to 37% growth in the next 3 years. If we add to this the company’s capabilities in terms of hyperloop transportation, the picture for investment is extremely rosy.
Tesla (TSLA)
In 2013, the world admired the ambitious plans of Tesla (NASDAQ:TSLA) co-founder to build a hyperloop that could take passengers from Los Angeles to San Francisco in less than half an hour.
Despite raising about $450 million, Hyperloop One went out of business in 2023, which was a serious blow to the potentially multi-billion dollar industry.
However, this does not mean that we can give up on the idea of trains capable of reaching speeds of up to 760 mph. The developments are progressing, but their realization requires the production of high-tech batteries. Tesla creates state-of-the-art accumulators and aeronautical solutions that resonate with the needs of hyperloop projects.
The market capitalization of $791.65 billion describes the company’s enormous influence and explains its ability to drive technological progress.
The main focus is on electric vehicles, and Tesla successfully competes with industry giants such as General Motors (NYSE:GM), Ford (NYSE:F) and Volkswagen (OTCMKTS:VWAGY).
TSLA’s 65% recovery over the past 3 months results from the company’s updates and the market’s reaction to the excess of deliveries in Q2 2024. Tesla has reached a record level of energy storage capacity over the past 2 quarters and is a promising leader among hyperloop stocks.
On the date of publication, Julia Magas did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
