Now is a great time for investors to consider these eVTOL stocks that have multi-bagger return potential. I think that the threats of a recession have reduced considerably. And the majority of analysts are now switching from bearish to bullish.
This backdrop makes it possible to look at emerging technologies like electric vertical take-off and landing (eVTOL) aircraft. While still in the early stages, eVTOL could revolutionize urban air mobility and air travel. Several companies are making strides in developing eVTOL prototypes and attracting significant investments.
Of course, there are risks involved with any pioneering technology play. Regulatory hurdles, safety concerns, and the capital-intensive nature of the aviation industry pose challenges. For investors to comfortably navigate these risks, it’s important for them to have the appropriate risk appetite, and with the Nasdaq and the broader S&P 500 indices moving higher, that requirement my have been met.
So here are three eVTOL stocks that could be potential multibaggers in the making.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is actively developing its flagship eVTOL, the Midnight, aiming for commercial operations in 2025. This is due to a significant development, namely the planned completion of a volume manufacturing facility in 2024. All designed to support the production and delivery of up to 650 aircraft annually starting in 2025.
I think that ACHR is primed to surge higher amid its recent results. In 2023, ACHR ended the year with a substantial liquidity of approximately $625 million, despite reporting a net loss of $457.9 million. The total operating expenses amounted to $446.9 million for the fiscal year. The company is poised for growth with an indicative order book now valued at up to $3.5 billion.
Analysts are very bullish on ACHR stock for this year, as they are pricing in an 89.72% potential upside within the next twelve months already. If these forecasts hold, then the brand could well be on its way to delivering multi-bagger returns.
Blade Air Mobility (BLDE)
Blade Air Mobility (NASDAQ:BLDE) operates an app-based service for booking seats on helicopter and charter jet flights, which will be a key service for consumers to tap into the utility provided by eVTOL stocks.
The reason I like BLDE is that its fundamentals are improving quickly. In my opinion, this company has a shorter runway to profitability, which could be a crucial consideration for investors who are more risk-averse.
For example, adjusted EBITDA improved to $0.8 million in Q3 last year from a negative $4.5 million in the prior year period, and the company reported a free cash flow of $1.3 million, a $7.8 million increase from Q3 2022.
Analysts are also optimistic about BLDE’s stock, predicting an average target price of $7.80, which represents a 95.49% increase from its current price. The stock has a consensus rating of “Strong Buy” from analysts.
With profitability in view, BLDE could be one of those multibaggers for early investors.
Joby Aviation (JOBY)
No article for a list of potential eVTOL multi-baggers would be complete without a mention of Joby Aviation (NYSE:JOBY). I think that JOBY could have one of the strongest chances out of the eVTOL stocks to become a potential multi-bagger.
JOBY reported its first revenue of $1 million from early flight services provided to the Department of Defense last year. It also ended the year with $1 billion in cash and short-term investments.
Looking ahead, the company anticipates using between $440 million and $470 million in cash, aiming to enhance its commercialization efforts.
There’s other reasons that I think JOBY could shoot higher, including its cheap valuation, with a market cap of just 3.4 billion, and trading at a book ratio of just 3.5 times its book assets.
Inventor enthusiasm alone could be what propels JOBY to multibagger status, and I believe that the bulls will stay with this one until it reaches great returns.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.