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Will Archer Aviation (ACHR) Stock Double During Trump's Presidency?
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Admittedly, Archer Aviation (NYSE:ACHR) is not a “political” stock. Unlike bank stocks or private prison operators, there is no specific catalyst from a Trump presidency that could launch the electric vertical takeoff and landing (EVTOL) aircraft stock into the stratosphere.
On the other hand, even with the incoming administration’s antagonism toward government-funded green initiatives, there are no real hurdles that will be put in its path for growth.
As a result, Archer Aviation looks like a stock that will readily double in value over the next four years. Investors should see ACHR stock go from its current sub-$4 per share price to $8 or more in the coming years.
24/7 Wall St. Insights:
- Archer Aviation (ACHR) is one of the leaders of the nascent EVTOL industry and is planning to commercially launch operations next year.
- Because its stock is an apolitical one, presidential politics shouldn’t be an obstacle to shares gaining altitude next year when its business takes off.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
FAA clears the runway for EVTOL flight
Archer Aviation is one of the leaders in the EVTOL market. It is on track to commercially launch in 2025 after gaining Federal Aviation Administration certification for its aircraft. The agency recently released its Special Federal Aviation Regulation for powered-lift aircraft, removing the fog for how EVTOL companies prepare for commercialization.
CEO Adam Goldstein said in a statement, “Now, Archer has a clear roadmap to pioneer eVTOL here in the U.S. Our team is full speed ahead in our ongoing partnership with the FAA as we work towards commercialization as soon as possible.”
With the new regulation covering alternative pilot certification and training standards and operation of the aircraft themselves, potential stumbling blocks have been cleared.
For example, pilots will now be able to gain credit for certain types of flight simulator training towards their certification. Archer and others will also be able to operate under the less restrictive helicopter flight rules when considering fuel reserves.
The regulation should help the industry literally get off the ground.
Industry backing ensures a smooth takeoff
Shares of ACHR have bounced around over the past year as various milestones were achieved, but are down 37% year-to-date. As a pre-revenue company it has no income to speak of and posts substantial losses, but all that is to be expected when a company is helping to build a whole new industry from the ground up.
Yet investors have good reason to be optimistic. Archer has cemented several important agreements with major industry partners including automaker Stellantis (NYSE:STLA), which is financing Archer’s manufacturing operations, and several airlines including Southwest Airlines (NYSE:LUV) and United Air Lines (NASDAQ:UAL) to operate out of their airport hubs across the country.
Most recently it just signed an agreement with Soracle, a joint venture of Japan Airlines (OTC:JAPSY) and Sumitomo (OTC:SSUMY), to bring advanced air mobility services to Japan. Soracle will buy up to 100 of its Midnight aircraft from Archer for $500 million, with certain prepayments to be delivered based upon manufacturing milestones.
A discounted stock with plenty of room for growth
Archer Aviation is poised to hit the ground running when it gains FAA certification next year. The EVTOL industry is seen as the next advance in regional air travel and as one of the players furthest along in the process, it should benefit most.
With ACHR stock now trading at a discount to where it had been for most of the year, it represents an excellent opportunity to buy now before its shares double.
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