Flying taxi stocks are no longer in the realm of our futuristic dreams. Debut liftoff is sooner than you might expect. With potential returns that could soar to the skies, the demand for these stocks is ramping up. Savvy investors are already looking for the best flying taxi stocks to buy and reap massive rewards.
In addition, Fortune Business Insights expects the market to grow astoundingly, projecting a compound annual growth rate (CAGR) of 58.1% through 2040, ultimately smashing past the $1.5 trillion mark. Sure, flying cars of the imminent future might not mirror the fantastical vehicles from your favorite sci-fi films, but the excitement is undeniable.
Here are some of the best flying taxi stocks to buy now for those looking to harness the momentum and climb new heights.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is flying high this year, with shares skyrocketing by triple-digit margins year-to-date. Though a $184 million dent in its bottom-line during the second quarter was concerning, the horizon appears bright. Analysts remain upbeat over long-term prospects. TipRanks’ data shows the consensus leaning towards a robust buy with a 18.7% upside from current levels.
ACHR stock has been killing it late on the back of its whooping $142 million deal with the U.S. Air Force. It had offered up to six of its avant-garde electric Midnight flying taxis, looking to redefine search-rescue missions. Furthermore, Archer eyes a flying taxi route in Chicago with its partnership with United Airlines (NASDAQ:UAL).
Meanwhile, fueled by a lavish $215 million endorsement from juggernauts such as Stellantis (NYSE:STLA) and Boeing (NYSE:BA), ACHR stock has been on quite a run. Despite financial turbulence, Archer’s strong alliances bring credibility to the table.
Boeing (BA)
Boeing (NYSE:BA) has positioned itself as a true champion in aviation innovation. It is seamlessly integrating its cutting-edge technology into commercial airplanes to raise safety standards.
Moreover, its been making major inroads within the autonomous vehicles space following its successful test of an autonomous passenger air vehicle in 2019. Additionally, Boeing made significant strides by investing $450 million in Wisk Aero, a venture deeply entrenched in developing a pilotless flying taxi. Unveiling its sixth-generation aircraft at the Paris Air Show this June, all eyes are now on Wisk, set to get its flying taxi certified by 2028.
Boeing managed to beat Wall Street’s expectations despite a topsy-turvy earnings report. That print was marked by an adjusted earnings-per-share of a negative 82 cents and $2.6 billion in free cash flow in the second quarter. Impressively, its revenues were up to a remarkable $19.75 billion, a robust 18% year-over-year rise. Also, TipRanks analysts point to an enticing potential upside of 14.8%, adding to its attractiveness at this time
XPeng (XPEV)
Chinese auto giant Xpeng (NYSE:XPEV) is ensuring an enticing future with its patented flying taxi on the verge of transforming the transportation sphere.
Morgan Stanley projects that by 2040, the flying car sector will reach a staggering $1.5 trillion. China is poised to dominate 29% of this market, positioning it for massive long-term gains. With the grand unveiling of the Xpeng Voyager X2, the firm showcased its prowess with a triumphant public test flight at the esteemed GITEX tech expo in Dubai.
Its financial performance, though not without challenges, remains promising. Xpeng recorded a 27% quarter-on-quarter surge in car deliveries, exceeding its expectations for the Q2 of 2023. Moreover, with Tesla’s sales in China dipping, domestic producers are securing more significant market buy-ins.
Further strengthening Xpeng’s market position is a strategic partnership with Volkswagen. The German auto giant’s recent $700 million investment translates to a significant 5% stake. Hence, with products like the Xpeng X2, and the company’s potential for long-term expansion, Xpeng presents a compelling case for astute investors.
On the date of publication, Muslim Farooque did not have (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