ACHR Advances in Commercializing Midnight Jet: Should You Buy the Stock Now?

Company Overview - Archer Aviation Inc (ACHR) has completed the construction of its high-volume manufacturing facility in Georgia, which is expected to produce two Midnight eVTOL aircraft per month by the end of 2025 and 650 jets annually by 2030 [1] - The company has made significant progress in 2024, including partnerships for electric aircraft operations in major US metropolitan areas and a Space Act Agreement with NASA for battery cell research [6] - Archer Aviation received FAA certification to operate its Midnight aircraft commercially and signed a $580 million agreement with Future Flight Global for the delivery of up to 116 Midnight aircraft [7] Financial Performance - ACHR stock has surged 78.1% over the past year, outperforming the Zacks Aerospace-Defense industry's decline of 3%, the broader Aerospace sector's gain of 7.5%, and the S&P 500's return of 23.7% [3] - The company reported earnings surprises of 20.69% in Q1 2024 and 14.29% in Q2 2024, with Q3 earnings in line with estimates [8] - ACHR's total debt to capital ratio is 12.04%, significantly better than the industry average of 55% [15] Market Opportunity - The global eVTOL aircraft market is projected to grow at a CAGR of 52.0% from 2023 to 2030, driven by increasing urban traffic congestion and demand for sustainable transport solutions [10] - Archer Aviation is well-positioned to capitalize on this growth with its Midnight aircraft, expected to generate notable revenues and bottom-line growth once commercial deliveries begin [11] Earnings Estimates - The Zacks Consensus Estimate for Q4 2024 and full-year 2024 earnings shows year-over-year improvement, with upward revisions for Q1 and full-year 2025 estimates [12] - Year-over-year growth estimates for Q4 2024, Q1 2025, full-year 2024, and full-year 2025 are 17.24%, 21.74%, 31.58%, and 25.48% respectively [13] - The trend of estimate revisions over the past 60 days shows positive changes ranging from +2.80% to +10.00% [14] Industry Comparison - Other industry players like Rocket Lab USA (RKLB), Embraer (ERJ), and RTX Corp (RTX) have also seen strong stock performance, with gains of 404.9%, 121.9%, and 39.4% respectively over the past year [4]