EHang Holdings (NASDAQ:EH) is not a household name, however, EH stock has become one of the top autonomous aerial vehicle plays.

As a result, shares in this flying vehicle company are up nearly three-fold over the past 12 months.

Trading for a little over $5 per share last September, as of this writing the stock changes hands for around $17.20 per share, and during the summer traded for as much as $23.24 per share.

Given this big run-up, plus the fact shares have pulled back in more recent months, you may think you “missed the boat” with this high-flier.

Fortunately, that is far from the truth. While I wouldn’t dive in on the expectation of another three-fold jump in the near term, growth investors should still view EH stock as a strong long-term opportunity. Here’s why.

EH Stock: A Leader in a High Potential Industry

Back in August, I discussed the backstory with EHang, but in case you missed it, here it is again in a nutshell.

Founded and based in China, this is one of many startups looking to make a name for itself in the electric vertical takeoff and landing segment of the AAV industry.

While one of many publicly traded eVTOL contenders, EH stock has shaped up to be one of the strongest in the pack. The company has made major progress toward obtaining the type of certificate needed for its flagship aircraft, the EH216-S, to begin commercial operations.

Getting this regulatory approval will not lead to material revenue growth, much less a move to profitability right away. However, the rewards down the road could be substantial. Per the company, between now and 2050, urban air mobility could scale into a $9 trillion industry.

Of course, the total addressable market could ultimately fall far short of this gargantuan figure. If urban air mobility “merely” scales into a market worth $1 trillion in annual revenue, that suggests big upside for EHang, despite the stock’s incredible run over the past year.

A High-Flier and a ‘Ground Floor’ Opportunity

Speaking of valuation, EH stock, like any speculative growth stock, is valued primarily on expected results, rather than actual current operating performance. At current prices, EHang has a market cap of around $1 billion.

Relative to the company’s revenue and earnings over the year, this may seem very high. Analyst forecasts call for EHang to generate just $14.6 million this year. In terms of the bottom line, net losses are expected to come in at 68 cents per share.

Investors who “got in early” in late 2022, buying in at single-digit prices, still had to pay up, but not to the extent you may have to if you decide to enter a position. However, while EH this year has become a high-flier, don’t assume you missed out on getting in at the ground floor.

The true takeoff moment for this company, and for this stock, has yet to arrive. EHang could find ample demand for eVTOLs, for applications ranging from air taxis to firefighting drones.

While based in China, the company also has the global market in its sights. In the coming years, revenue growth could prove more than sufficient to sustain (and grow) EHang’s valuation.

A Long-Term Buy, But Approach It the Right Way

While there is good reason to be bullish, it goes without saying that it’s unwise to “bet the ranch” on EHang shares. A strong growth story can always shatter because of unforeseen circumstances.

To limit your risk, approach the stock like you would any speculative, early stage name. Feel free to enter a small position, but don’t go overboard.

You may want to also take your time accumulating a position. As the excitement over recent news fades further in the short term, shares could keep dropping to a more favorable entry point.

That said, with the latest progress possibly paving the way for this small-cap company to dominate what could grow into a multitrillion-dollar industry, this is not only one of the best AV stocks. EH stock is one of the best high-risk, high-reward opportunities today as well.

EH stock earns an A rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.