These companies are doing exciting things in multibillion-dollar industries.We're over a year into a new bull market, but contrary to previous market cycles, small-cap stocks are not performing nearly as well as large-cap ones.Small caps have historically trounced the return of the S&P 500 coming out of bear markets, but since the end of the most recent downturn in 2022, the small-cap focused Russell 2000 is up 24%, while the large-cap weighted S&P 500 is up 50%. This runs counter to the Russell 2000's perf ...

Archer Aviation's Midnight eVTOL aircraft has hit some key milestones.Imagine a world where you can avoid traffic gridlock by jumping into a flying taxi that whisks you away to your destination. While this seems like an idea out of science fiction, electric vertical takeoff and landing aircraft (eVTOL), also known as flying taxis, could be coming to a city near you.Flying taxis could potentially change urban transportation, and Archer Aviation (ACHR -1.98%) is one company looking to make them a reality. The ...

In the latest market close, Archer Aviation Inc. (ACHR) reached $2.98, with a +1.36% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.9%. On the other hand, the Dow registered a gain of 0.81%, and the technology-centric Nasdaq increased by 1.22%. Prior to today's trading, shares of the company had lost 9.54% over the past month. This has lagged the Aerospace sector's gain of 2.98% and the S&P 500's gain of 3.15% in that time. The investment community will ...

Aerospace Industry Overview - Archer Aviation and Rocket Lab USA are both small aerospace companies that went public via SPAC mergers in 2021, but their stocks have declined significantly since their peaks, with Archer down 80% and Rocket Lab down 60% from their record highs [1] Archer Aviation - Archer produces electric vertical take-off and landing (eVTOL) aircraft designed to replace helicopters, offering advantages in cost, environmental impact, noise, speed, and landing ease [2] - The company's Midnight aircraft can carry small groups of passengers at speeds up to 150 mph for distances up to 100 miles, primarily targeting air taxi services [2] - Archer has secured significant contracts, including a $1 billion order from United Airlines for 200 eVTOL aircraft and a partnership with Stellantis for exclusive contract manufacturing [2] - The company delivered its first eVTOL aircraft to the U S Air Force in August 2023, but is expected to generate only $2 million in revenue for the year with a net loss of $454 million, well below its original 2024 revenue target of $42 million [3] - Archer has ambitious production targets, aiming for 10 aircraft in 2025, 48 in 2026, 252 in 2027, and 650 in 2028, with analysts projecting $40 million in revenue for 2025 and a net loss of $443 million [4] - The company faces financial challenges, with $360 million in cash and equivalents and $150 million in liabilities, and has increased its share count by nearly 50% since going public [4] Rocket Lab USA - Rocket Lab develops partially reusable orbital rockets, with its Electron rocket having completed 53 launches over seven years, capable of carrying payloads up to 250 kg [5] - The company is developing the Neutron rocket, expected to surpass SpaceX's Falcon with a maximum payload capacity of 15,000 kg when it launches next year [5] - Rocket Lab operates three dedicated launch pads and serves a diverse customer base including NASA, the U S Space Force, and various national space agencies and private companies [5] - The company has shown strong revenue growth, increasing from $35 million in 2020 to $245 million in 2023, though slightly missing its pre-merger target of $267 million [6] - Rocket Lab's adjusted EBITDA margin was negative 37% in 2023, significantly below its original forecast of positive 10% [6] - The company has signed 17 additional launch contracts in the first half of 2024 and is expanding its space systems division to improve margins and stabilize its business [6] - Analysts project Rocket Lab's revenue to grow 74% to $425 million in 2024 and 40% to $597 million in 2025, with net losses of $189 million and $124 million respectively [6] - Rocket Lab has $345 million in cash and equivalents but $733 million in liabilities, and has increased its share count by only 11% over the past three years [7] Valuation and Comparison - Archer Aviation has an enterprise value of $920 million, trading at 23 times next year's sales, while Rocket Lab has an enterprise value of $4 3 billion, trading at seven times next year's sales [8] - Rocket Lab is considered a better investment due to its more stable business, lower valuation, and less aggressive share dilution compared to Archer [8]

Archer Aviation is on the cusp of big things, but it still has to hit a few milestones before it has air taxis flying in the U.S. market.Archer Aviation's (ACHR 5.14%) stock hasn't had a particularly good year, with the shares trading near their 52-week lows. But if the second-quarter earnings release is any indication, it is achieving some important progress as it looks to develop an air taxi and air taxi services. Here's a look at the buy, sell, and hold thinking on Archer Aviation.Buy Archer AviationWhen ...

This small commuter aircraft company is turning science fiction into a practical reality.It wasn't too long ago that flying taxis were the stuff of science fiction. The technology needed to economically ferry passengers through the skies above busy urban streets just didn't exist.As is so often the case though, time and innovation remove the obstacles to compelling ideas. Light but strong materials and quiet battery-electric engines are now realities, making air taxis possible. In fact, Archer Aviation (ACH ...

Core Viewpoint - Archer Aviation is positioned as a leader in the urban air mobility (UAM) market, focusing on the development of electric vertical takeoff and landing (eVTOL) aircraft, which could transform urban transportation by providing faster, cleaner, and quieter alternatives to traditional transport methods [1][3]. Company Overview - Archer Aviation is developing the Midnight eVTOL aircraft, designed for short-distance urban travel with a range of 60 miles and a top speed of 150 mph, aiming to enhance commuting experiences in densely populated areas [3]. - The company has a significant order backlog of $6 billion, indicating strong demand for its products and growing institutional investor confidence, with over 20 institutions and hedge funds holding stakes in Archer [9]. Financial Performance - Archer's stock has declined over 50% year-to-date, reflecting investor concerns due to the company's lack of revenue generation and significant operating losses driven by high research and development expenses [2][4]. - Despite the challenges, analysts project positive revenue generation for the third quarter and full-year 2024, with expectations of significant year-over-year improvement in 2025 [7][8]. Recent Developments - In August 2024, Archer delivered its first Midnight aircraft to the U.S. Air Force, marking a significant milestone in the company's journey towards commercializing its technology [6]. - Archer has secured a contract with Stellantis for manufacturing, which supports its production scaling efforts [9]. Market Outlook - The analyst community rates Archer Aviation as a "Moderate Buy," with a projected upside of 209.3%, indicating optimism about the company's future despite current challenges [7]. - The success of Archer's eVTOL aircraft will depend on navigating regulatory environments and public acceptance of air taxis as a viable transportation option [10][11].

Archer Aviation Inc.’s (ACHR) shares plunged a dismal 50.5% in the year-to-date period, underperforming the Zacks Aerospace-Defense industry’s loss of 3.5% as well as the broader Zacks Aerospace sector’s gain of 3.7%. It also came short of the S&P 500’s return of 19.9% in the same time frame. With Archer Aviation continuing to incur operating loss while still in the pre-revenue generation stage, investors may feel wary of the stock.ACHR YTD PerformanceImage Source: Zacks Investment ResearchOn the contrary, ...

These two innovation stocks appear poised for robust growth over the next 20 years.Innovation stocks have the power to deliver jaw-dropping returns in exceedingly short periods. Moreover, the current market landscape offers an unprecedented opportunity to invest in early stage innovation companies.Technological breakthroughs in artificial intelligence (AI), genomic medicine, and autonomous vehicles have spawned numerous stocks that have skyrocketed tenfold or more since 2020. Still, spotting these parabolic ...

Archer Aviation Inc. (ACHR) closed the most recent trading day at $3.06, moving +0.33% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, lost 0.36%.Heading into today, shares of the company had lost 17.12% over the past month, lagging the Aerospace sector's gain of 0.86% and the S&P 500's gain of 2.06% in that time.Market participants will be closely following the financial results of Archer Aviation ...