Looking for underpriced flying car stocks? You’ve come to the right place. This article dials in on eVTOL stocks worth buying. The term eVTOL, which stands for electric vehicle take-off and landing, represents a revolutionary industry aiming to commercialize flying cars.
Although it has yet to prove itself, the eVTOL industry is forecasted to grow at a staggering annualized rate of 21.5% until 2034. This projected growth rate has lured new eVTOL stock listings, all looking to capitalize on the phenomenon. However, high-quality eVTOL stocks remain scarce. However, here are three flying car stocks that are worth considering in the second quarter.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is a venture-backed flying car company with immense potential. Broadly speaking, the company’s vehicles are pilot-operated, carry four passengers and reach up to 200 miles per hour.
The company realized its first revenues in its fourth quarter, revealing a top-line figure of $1.03 million. Despite its successful quarter, Joby is awaiting regulatory approval for its air taxi service, meaning most of its revenue derives from services provided to government-directed flights.
It was reported in November that Joby’s government-contracted services pipeline is worth a hefty $163 million. However, Joy’s air tax approval will be a game-changer, as the United Arab Emirates recently awarded it a six-year exclusive rights contract, starting in 2025. As a result, we’ll likely see the stock reach its full potential once aviation regulators approve the concept.
Joby’s stock has dipped below its 10-, 50-, 100- and 200-day moving averages. Moreover, Joby has a relative strength index value of 27.66. This could mean that Joby’s stock is spiraling. However, it could be said that Joby’s stock is underpriced and ready to rumble.
Vertical Aerospace (EVTL)
Vertical Aerospace (NYSE:EVTL) is a British aero manufacturer partaking in the eVTOL industry. The firm’s designs look more chopper-like than vehicle-esque. However, its concept is similar to that of other vertical take-off and landing pioneers.
Although slightly behind Joby Aviation’s developmental process, Vertical Aerospace is set to deliver its commercial services by late 2026. Numerous reports suggested that the company’s delayed timeline could lead to solvency issues. However, a recent $10 million allotment from the UK Government and a new $50 million investment from its founder, Stephen Fitzpatrick, suggests solvency issues remain astray.
There’s no doubting Vertical Aerospace’s ambition. Sure, its status as a going concern can be questioned. Additionally, timeline risk must be considered, as competition in the flying car industry is heating up.
However, keep in mind that Vertical Aerospace is a government-backed company with a proof of concept, meaning it has an abundance of operational credibility.
EVTL stock slid below its 10-, 50-, and 200-day moving averages, after losing about 65% of its market value in the past year. However, an oversold opportunity has presented itself in this EVTL stock, especially considering its newly capitalized balance sheet
EHang Holdings (EH)
EHang (NASDAQ:EH) is a Chinese firm operating the world’s largest autonomous aerial vehicle platform. Unlike the previous stocks, EHang is a momentum play. The stock has surged by almost 60% in the past year, sending it above its 50-, 100-, and 200-day moving averages. This trend is probably not breaking anytime soon, and here’s why.
EHang has cornered a growing market, leading to robust fundamentals, illustrated by its fourth-quarter earnings report, which communicated $7.87 million in quarterly revenue. This represents a 2.45 times year-over-year increase.
Furthermore, EHang operates a nimble business model, allowing it a gross profit margin of 64.13%. Sure, the company has yet to reach profitability, but scale is of the essence now. EHang’s business is supported by various public-private initiatives, meaning it is heavily capitalized.
Additionally, the firm is obtaining regulatory approval for ramp-ups at various mass production facilities, including the Yunfu production base. As such, we could see the firm deliver a profitable income statement in due course.
EH stock’s price-to-sales ratio of about 65.58 suggests investors are still waiting to get bang for their buck. However, the firm’s recent scale phases out its price multiple risk.
We are looking at a solid buy here.
On the date of publication, Steve Booyens did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.