Latest news with #IntegrationPilotProgram
Yahoo
2 days ago
- Business
- Yahoo
Are These 2 High-Flying Growth Stocks Still Worth Buying After Recent Pullbacks?
Two companies are pioneering breakthrough technologies in urban air mobility and obesity care. Recent selloffs create compelling entry points into these ultrahigh-growth stocks. 10 stocks we like better than Archer Aviation › When markets get jittery, high-growth stocks often take the biggest hits. But for investors with a stomach for volatility and an eye for transformative potential, these pullbacks can create exceptional opportunities. Last Friday's market turbulence sent the S&P 500 down 1.13%, with growth stocks bearing the brunt of the selling pressure. Yet while headlines focused on geopolitical tensions, two companies quietly achieved major milestones that could define their next chapter of growth. Archer Aviation (NYSE: ACHR) and Viking Therapeutics (NASDAQ: VKTX) saw their shares decline 14.8% and 8.75%, respectively, during Friday's sell-off, but the underlying business momentum tells a very different story. Read on to find out more about these two innovative growth stocks. The future of urban air mobility may arrive sooner than expected. Archer Aviation's latest funding round, bolstered by President Trump's executive order launching an electric vertical take-off and landing (eVTOL) Integration Pilot Program, puts the company at the forefront of a fast-tracked regulatory push to bring electric air taxis to U.S. cities. The White House directive accelerates Archer's path toward certification for its flagship Midnight aircraft. Armed with roughly $2 billion in liquidity, CEO Adam Goldstein now touts a "fortress balance sheet." Archer recently completed its first piloted flight of the Midnight aircraft, a conventional runway takeoff and landing that reached 125 mph and climbed above 1,500 feet. While not a full vertical transition, the flight marks a meaningful step toward FAA certification, validating key flight systems and control surfaces under real-world conditions. Commercial momentum is also building. Archer's partnerships with United Airlines and its designation as the official air taxi provider for the 2028 Los Angeles Olympics add tangible near-term revenue potential. With more than $6 billion in customer orders, the company offers rare visibility into future cash flows for a pre-revenue aerospace firm. Still, the certification landscape remains fluid. Competitor Joby Aviation, backed by Toyota and the U.S. Air Force, is progressing along its aggressive timeline. FAA approval for an entirely new aircraft category is a complex and nonlinear process. Until formal certification is achieved, investors should treat all timeline claims with cautious optimism. Yes, certification risks remain real, but Archer's combination of White House backing, a $2 billion war chest, and concrete commercial partnerships creates an asymmetric risk-reward opportunity. With United Airlines' route network and Olympic showcase visibility already locked in, Archer offers investors a rare chance to own a potential category leader before the air taxi market takes flight. For those willing to stomach pre-revenue volatility, the risk-reward calculus increasingly tilts in Archer's favor. The obesity drug market represents one of the largest pharmaceutical opportunities in history, with analysts projecting a $100 billion addressable market by 2030. Viking Therapeutics sits at the center of this revolution with VK2735, a dual GLP-1/GIP receptor agonist that achieved remarkable results in earlier clinical trials. Phase 2 Venture study data for the drug's subcutaneous formulation showed weight reductions of up to 14.7%, results that put Viking's drug in the same league as market leaders such as Eli Lilly's Zepbound. Yet Viking's stock has pulled back by more than 35% in 2025, creating what appears to be a significant disconnect between clinical progress and market valuation. The company's last stated cash position of $852 million provides a solid foundation to advance VK2735 through phase 3 development, which is expected to begin in the second quarter of 2025. Equally important, Viking recently completed enrollment in a phase 2 trial for an oral version of the drug, with results expected in the second half of 2025. If successful, an oral obesity medication could capture an even larger market share than injectable alternatives. Here's the bottom line: Viking offers a rare opportunity to buy a potential obesity blockbuster at pre-phase 3 prices. At just a $2.92 billion market cap -- tiny for a company with a phase 3 obesity asset, especially one with best-in-class potential -- Viking trades at a fraction of what leading obesity players command. Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 George Budwell has positions in Archer Aviation, Joby Aviation, and Toyota Motor and has the following options: long January 2026 $60 calls on Viking Therapeutics. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy. Are These 2 High-Flying Growth Stocks Still Worth Buying After Recent Pullbacks? was originally published by The Motley Fool
Business Insider
2 days ago
- Business
- Business Insider
Archer Aviation Stock (ACHR) Slips 14%, Yet Analyst Expects 30%+ Upside on eVTOL Plans
Archer Aviation (ACHR) stock took a sharp hit on Friday, with shares sliding 14% after the company announced an $850 million stock offering priced at $10 per share. The deal is expected to bring in $817.1 million in net proceeds and is set to close on June 16, 2025. While the fresh capital will help fuel Archer's growth and aircraft certification efforts, the share dilution clearly weighed on investor sentiment. In response to the funding news, Canaccord Genuity analyst Austin Moeller reaffirmed his Buy rating on Archer but trimmed the price target slightly from $13.50 to $13.00. The new price target implies over 30% upside potential. Confident Investing Starts Here: The announcement comes on the heels of new executive orders from President Donald Trump to implement an eVTOL (electric vertical takeoff and landing) Integration Pilot Program (eIPP) in the United States. This initiative aims to speed up the rollout of eVTOL aircraft in the U.S. Analyst Backs Archer's eIPP Bid Moeller called the $850 million raise an important move to help Archer take part in the eIPP. This new U.S. government program will support five electric aircraft projects, with the goal of getting them ready to operate before the 2028 Olympic Games in Los Angeles. According to the analyst, Archer's quick action to raise funds shows its clear intent to take part in this eIPP initiative. He believes this extra capital will help the company speed up production and move through the aircraft certification process—both of which are crucial for meeting the program's tight timeline. With this funding round, Archer's total cash balance is expected to rise to around $1.8 billion, based on its first-quarter 2025 figures and past fundraises. Notably, Archer ended the quarter with $1.03 billion in cash and equivalents. Moeller added that this figure does not include $47.5 million available through its at-the-market (ATM) program or up to $400 million in future support from Stellantis, which is expected to help expand production of the Midnight aircraft in Georgia. Moeller believes Archer's strong financial base gives it a clear edge over its rivals. The Department of Transportation has 180 days to choose five aircraft designs for the eIPP, and Moeller sees Archer as a top contender. In his view, Archer stands out as one of the two leading eVTOL developers in the U.S. Is ACHR Stock a Buy, Sell, or Hold?
