Archer Aviation Gains 123% in 3 Months: How Should You Play the Stock?

Zacks12-13

Shares of Archer Aviation Inc. ACHR have soared 123.2% in the past three months against the Zacks Aerospace-Defense industry’s decline of 9.7% as well as the broader Zacks Aerospace sector’s fall of ...

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ACHR have soared 123.2% in the past three months against the Zacks Aerospace-Defense industry’s decline of 9.7% as well as the broader Zacks Aerospace sector’s fall of ...</p>\n\n<a href=\"https://finance.yahoo.com/news/archer-aviation-gains-123-3-200000767.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Archer Aviation Gains 123% in 3 Months: How Should You Play the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nArcher Aviation Gains 123% in 3 Months: How Should You Play the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-13 04:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/archer-aviation-gains-123-3-200000767.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Archer Aviation Inc. ACHR have soared 123.2% in the past three months against the Zacks Aerospace-Defense industry’s decline of 9.7% as well as the broader Zacks Aerospace sector’s fall of ...</p>\n\n<a href=\"https://finance.yahoo.com/news/archer-aviation-gains-123-3-200000767.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ERJ","symbol_name":"巴西航空工业","start_time":0,"source_url":"https://finance.yahoo.com/news/archer-aviation-gains-123-3-200000767.html","article_id":"2491354608","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/4J5O9ltcQfL5HxwmfBJTrQ--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/c3b06315e8b746acdf2a4daa7973625a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491354608","pubTimestamp":1734033600,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Shares of Archer Aviation Inc. ACHR have soared 123.2% in the past three months against the Zacks Aerospace-Defense industry’s decline of 9.7% as well as the broader Zacks Aerospace sector’s fall of 6.4%. It also outpaced the S&P 500’s return of 7.8% in the same time frame.This outperformance of Archer Aviation on the bourses might lure investors interested in electric vertical take-off and landing  manufacturers to add the stock to their portfolio. However, before making any hasty decision, it would be prudent to take a look at how ACHR stock has performed so far, the company’s long-term prospects as well as risks  to investing in the same. This would help investors make a more insightful decision.Once Archer Aviation starts delivering its eVTOL aircraft to its commercial customers, we may expect the company to generate notable revenues, which in turn would allow it to earn solid gross profit and, thereby, register bottom-l","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ERJ":"巴西航空工业","EADSY":"空中客车集团","BK4585":"ETF&股票定投概念","BK4564":"太空概念","BK4080":"零售业房地产投资信托","BA":"波音","UAE":"iShares MSCI UAE ETF","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","BK4588":"碎股","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","ACHR":"Archer Aviation Inc.","BK4551":"寇图资本持仓","BK4231":"零售房地产信托","LU0823046494.USD":"AMUNDI FUNDS LATIN AMERICA EQUITY \"A2\" (USD) ACC","AAM":"AA Mission Acquisition Corp.","LU0823046577.USD":"AMUNDI FUNDS LATIN AMERICA EQUITY \"A2\" (USD) INC","ROIC":"Retail Opportunity Investments C","BK4516":"特朗普概念","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","BK4187":"航天航空与国防"},"translate_title":"Archer Aviation 3个月内上涨123%：你应该如何玩这只股票？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ACHR":1,"UAE":1,"ROIC":1,"ERJ":1,"BA":1,"AAM":1,"EADSY":0.9},"content_text":"Shares of Archer Aviation Inc. ACHR have soared 123.2% in the past three months against the Zacks Aerospace-Defense industry’s decline of 9.7% as well as the broader Zacks Aerospace sector’s fall of 6.4%. It also outpaced the S&P 500’s return of 7.8% in the same time frame. \nImage Source: Zacks Investment Research\nThe stock’s three-month price return also outperformed that of three key aerospace manufacturers, namely, Airbus Group EADSY, The Boeing Company BA and Embraer S.A. ERJ. Shares of Airbus, Boeing and Embraer have gained 13.4%, 6% and 3.2%, respectively, over the past three months.\nThis outperformance of Archer Aviation on the bourses might lure investors interested in electric vertical take-off and landing (eVTOL) manufacturers to add the stock to their portfolio. However, before making any hasty decision, it would be prudent to take a look at how ACHR stock has performed so far, the company’s long-term prospects as well as risks (if any) to investing in the same. This would help investors make a more insightful decision.\nWhat’s Pushing ACHR Stock Higher?\nOver the past three months, Archer Aviation has achieved a few key milestones, accelerating its progress toward successfully bringing its Midnight eVTOL aircraft into the commercial market. In November 2024, the company announced its signed agreements with Soracle Corporation, a joint venture newly established by Japan Airlines and Sumitomo Corporation. Per this agreement, Soracle will launch its advanced air mobility (AAM) operation in Japan using ACHR’s Midnight aircraft.\nIn September, Soracle signed an agreement to purchase up to $500 million worth of Midnight aircraft. \nMeanwhile, the company established a consortium in the United Arab Emirates (UAE) during the July-September quarter of 2024, which paved the way for launching its commercial air taxi services in the nation during the fourth quarter of 2025.  \nNo doubt, these accomplishments reflect the steady progress Archer Aviation is making in the eVTOL market, which must have boosted investors’ confidence in this stock, duly reflected in its past three-month price performance at the bourses.\nWhat Lies Ahead for ACHR Stock?\nWith increasing traffic congestion in urban cities, the demand for sustainable and low-carbon emission transport solutions is rising, which in turn has been boosting the market growth opportunity for eVTOL aircraft like Midnight.  To this end, it is imperative to mention that following the Federal Aviation Administration’s (FAA) finalized Midnight jet’s airworthiness criteria in May 2024, Archer Aviation is now nearing completion of Phase 3 of the FAA’s 4-phase type certification process while continuing to rapidly advance through Phase 4, the final phase to secure type certification.\nOnce Archer Aviation starts delivering its eVTOL aircraft to its commercial customers, we may expect the company to generate notable revenues, which in turn would allow it to earn solid gross profit and, thereby, register bottom-line growth. \nA sneak peek at ACHR’s near-term earnings estimates reflects the same.\nUpbeat Earnings Estimates for ACHR\nThe Zacks Consensus Estimate for fourth-quarter and full-year 2024 earnings indicates year-over-year improvement. The estimate for 2025 also mirrors a similar trend. \nThe estimates for first-quarter and full-year 2025 reflect upward revision, which indicates enhanced investor confidence in this stock’s earnings generation next year.   \nImage Source: Zacks Investment Research\nImage Source: Zacks Investment Research\nRisks to Consider Before Choosing ACHR Stock\nACHR offers promising near-term prospects, but whether its business will be sustainable in the long run remains uncertain. This is because the eVTOL aircraft market is still in its early stages, and ACHR's success depends not only on its ability to design, develop and certify eVTOL aircraft but also on how demand for these vehicles evolves. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, ACHR's growth potential may be constrained.\nAdditionally, ACHR and other aerospace manufacturers are navigating industry challenges, including supply-chain disruptions, rising jet fuel prices, and a shortage of skilled labor. Such factors could hinder ACHR’s ability to complete its projects on time. A significant delay in obtaining FAA certification might necessitate raising additional capital beyond its current reserves, further impacting the timeline for revenue generation. Considering these uncertainties, ACHR faces market and operational risks that could affect its ability to establish a sustainable presence in the evolving eVTOL industry.\nThe company is yet to generate revenues, which also might be a cause of concern for its investors as it might not be able to offer attractive returns to its shareholders unless it can make a profit from its own business. Its negative Return on Invested Capital (ROIC), which also lags the industry’s ROIC, further justifies that.\nImage Source: Zacks Investment Research\nWhat Should an Investor Do?\nInvestors interested in Archer Aviation should refrain from buying this stock now, considering its negative ROIC and the uncertain long-term viability of its business. However, those who own it may continue to do so, taking into account the upward revision in its earnings estimates, solid share performance in recent times, and strong progress toward the commercial launch of its Midnight eVTOL. \nThe company’s Zacks Rank #3 (Hold) also supports our investment thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nThe Boeing Company (BA) : Free Stock Analysis Report\nEmbraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report\nAirbus Group (EADSY) : Free Stock Analysis Report\nArcher Aviation Inc. (ACHR) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491354608"}