Is Archer Aviation a Buy Under $5?

: ACHR | Archer Aviation Inc. News, Ratings, and Charts

ACHR – Shares of ACHR are currently trading at less than $5, reflecting the company’s poor fundamentals. So, considering the challenges involved in electric aircraft manufacturing, will ACHR be a good bet now? Read on to learn our view.

Archer Aviation Inc. (ACHR) in Palo Alto, Calif., is an aerospace company that is focused on designing and developing electric vertical takeoff and landing aircraft in urban air mobility networks. Its product, named Maker, is a full-scale electric aircraft capable of traveling at speeds of up to 150 miles per hour. However, ACHR’s stock  has declined 59.4% in price over the past nine months and 60.6% over the past year to close the last trading session at $4.02. In addition, it is currently trading 62.5% below its 52-week high of $10.72, which it hit on June 9, 2021.

The world is moving toward a sustainable aviation future with the introduction of electric aircraft. Many companies and startups are vying to grab a piece of the pie in the highly lucrative emission-free commercial aircraft industry.

However, not all companies are well-positioned to capitalize on the industry’s potential growth because  they face lengthy certification and technology challenges. Thus, financially weak and incompetent companies in this space, such as ACHR, might struggle to stay afloat. Suffice to say, we think ACHR’s near-term prospects look bleak.

Here is what could influence ACHR’s performance in the upcoming months:

Disappointing Financials

ACHR’s operating expenses increased 1,356.5% year-over-year to $358.3 million for its fiscal year ended Dec. 31, 2021. The company’s net loss and comprehensive loss widened by 1,302.4% year-over-year to $347.8 million. Also, its loss per share widened 540.8% year-over-year to $3.14.

Low Profitability

ACHR’s trailing-12-month ROCE, ROC, and ROA are negative compared to the 3.68%, 6.88%, and 5.15% respective industry averages.

POWR Ratings Reflect Bleak Prospects

ACHR has an overall D rating, which equates to Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. ACHR has an F grade for Growth, which is consistent with analysts’ expectations that its EPS will remain negative in fiscal 2022 and 2023.

Furthermore, the stock has a D grade for Quality, which is in sync with its negative ROA compared to the 5.15% industry average.

ACHR is ranked #72 out of 75 stocks in the C-rated Air/Defense Services industry. Click here to access ACHR’s ratings for Value, Momentum, Stability, and Sentiment.

Bottom Line

Electric aircraft are set to play a prominent role in the sustainable aviation future globally. However, ACHR is not well-positioned to capitalize on the industry’s growth prospects. Despite its stock trading below $5, ACHR’s poor financials and lower-than-industry profitability we think make it best avoided now.

How Does Archer Aviation Inc. (ACHR) Stack Up Against Its Peers?

ACHR has an overall POWR Rating of D, which equates to a Sell rating. Therefore, one might want to consider investing in other Air/Defense Services stocks with an A (Strong Buy) or B (Buy) rating, such as Moog Inc. (MOG.A), Ducommun Incorporated (DCO), and Lockheed Martin Corporation (LMT).

What To Do Next?

If you would like to see more top stocks under $10, then you should check out our free special report:

3 Stocks to DOUBLE This Year

What gives these stocks the right stuff to become big winners?

First, because they are all low-priced companies with explosive growth potential, that excel in key areas of growth, sentiment and momentum.

But even more important is that they are all top Buy rated stocks according to our coveted POWR Ratings system, Yes, that same system where top-rated stocks have averaged a +31.10% annual return.

Click below now to see these 3 exciting stocks which could double (or more!) in the year ahead:

3 Stocks to DOUBLE This Year

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


ACHR shares fell $4.02 (-100.00%) in premarket trading Tuesday. Year-to-date, ACHR has declined -33.11%, versus a -6.34% rise in the benchmark S&P 500 index during the same period.


About the Author: Dipanjan Banchur


Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ACHRGet RatingGet RatingGet Rating
MOG.AGet RatingGet RatingGet Rating
DCOGet RatingGet RatingGet Rating
LMTGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How Much Resistance @ 6,000 for Stocks?

The post-election rally was an exciting burst for the stock market. With that the S&P 500 (SPY) made new highs just above 6,000. Since then stocks have struggled begging the question: what happens next? 44 year investing veteran Steve Reitmeister provides the answers along with his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

Read More Stories

More Archer Aviation Inc. (ACHR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ACHR News