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Are These 2 High-Flying Growth Stocks Still Worth Buying After Recent Pullbacks?
Are These 2 High-Flying Growth Stocks Still Worth Buying After Recent Pullbacks?

Globe and Mail

time14 hours ago

  • Business
  • Globe and Mail

Are These 2 High-Flying Growth Stocks Still Worth Buying After Recent Pullbacks?

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. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » 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. Archer takes flight with unmatched momentum 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. Viking's experimental obesity drug faces temporary headwinds 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. Should you invest $1,000 in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 is988% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025

Stellantis N.V. (STLA): Among the High Growth EV Stocks to Invest In
Stellantis N.V. (STLA): Among the High Growth EV Stocks to Invest In

Yahoo

time11-05-2025

  • Automotive
  • Yahoo

Stellantis N.V. (STLA): Among the High Growth EV Stocks to Invest In

We recently compiled a list of the 10 High Growth EV Stocks to Invest In. In this article, we are going to take a look at where Stellantis N.V. (NYSE:STLA) stands against the other best High Growth EV stocks. Automobiles that run on electricity rather than gas are referred to as electric cars, or EVs. Electric car stocks consist of companies that primarily manufacture electric vehicles. The electric vehicle business also includes companies that provide parts for electric vehicles, including batteries or autonomous driving systems. S&P Global Mobility estimates that around 7.36 million of the 16 million cars sold in 2024 were not made in the United States, showing that President Trump's 25% tariffs on imported cars, which have been in effect since March 2024, affect about 46% of the country's auto market. On May 3, tariffs on some auto components, including engines and transmissions, went into effect. However, the administration unveiled a two-year relief plan in response to industry criticism. In the first and the second year, automakers that manufacture in the United States are allowed to deduct import tariffs on parts up to 3.75% and 2.5% of the suggested retail price of a car, respectively. Automobiles having at least 85% U.S., Canadian, or Mexican components are exempt; by 2025, the percentage will rise to 90%. The overlapping tariffs on commodities, steel, and aluminum from Mexico and Canada have been waived for businesses. Industry groups have issued warnings that the tariffs would increase market maintenance costs, lower sales, and boost car prices. Recently, according to the Cox Automotive report, in Q1 2025, sales of electric vehicles in the United States rose 11.4% year over year to around 300,000 units, making up 7.5% of all new vehicle sales, up from 7% in Q1 2024. New model launches fueled growth, with multiple brands either diversifying their EV lineups or making their first steps into the market. One significant automaker sold over 30,000 EVs, almost doubling its volume from the previous year. In Q1, another company that had not been involved in the EV market before contributed over 14,000 units. However, not all players grew; some established models experienced significant decreases as product strategies changed. However, the market for EVs is facing more challenges. A well-known EV brand had a 26% decline in sales from its 2023 peak of 173,000 units to 128,000 units in Q1, a 9% year-over-year decline, and a 3% decline in market share. Future growth is threatened by ongoing tariffs on vehicles and essential commodities like aluminum and battery supplies, as well as policy uncertainty. Nonetheless, the research firm Rho Motion projected that China's prolonged subsidies and the new EU emissions targets will propel global EV and plug-in hybrid sales to increase by more than 17% in 2025, reaching 20 million units. China is the market leader, with EV sales forecast to jump by 40% to 11 million by 2024, and Latin America and Asia-Pacific will continue to dominate. Sales in Europe are anticipated to surge by 15% from 3 million units in 2024, even though there could be fines of €10 billion for missing emissions targets. Despite the uncertainties surrounding policy, U.S. sales have been projected to rise by 16%. Rho Motion Head of Research, Iola Hughes, stated: 'In the US market, a lot of uncertainty has obviously hit the market in the last year or so, and we are expecting reduced EV forecasts,' 'However, the shift to electric vehicles is still very much happening and we will still see growth over the next decade.' A close-up view of a modern automobile with its sleek curves and luxurious body. For this article, we sifted through the online rankings to form an initial list of the 20 EV stocks. From the resultant dataset, we chose 10 stocks with an average 5-year revenue growth of over 20%. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Average 5-Year Revenue Growth: 21.61% Stellantis N.V. (NYSE:STLA), the fourth-largest automotive original equipment manufacturer based on vehicle sales, was founded in January 2021 by the merger of French-based Peugeot and US-based Fiat Chrysler Automobiles. In 2024, North America accounted for 47% of its 5.5 million vehicle sales, followed by South America (26%) and Europe (17%). The company's brands include Fiat, Jeep, Chrysler, Ram, Peugeot, Citroën, Opel, Alfa Romeo, and Maserati. It is one of the best high growth stocks with an average 5-year revenue growth of 21.61%. Stellantis N.V. (NYSE:STLA) offers a wide range of electric vehicles, such as hydrogen fuel cell cars and battery EVs. The company's 'Dare Forward 2030' strategy calls for the introduction of more than 75 battery EV vehicles by 2030. In 2024, Stellantis N.V. (NYSE:STLA) showed outstanding inventory control by reducing US dealer stock from 430,000 units at the halfway point of the year to 304,000 units at the end, surpassing its goal of 330,000 units. The company also broadened its global presence with exciting new car introductions such as the Citroen C3, Dodge Charger, Jeep Wagoneer S, Citroen C3 Aircross, Opel Frontera, and Fiat Grande Panda. It proposed a EUR 300 million contract with Comau and a dividend of EUR 0.68 per share, totaling EUR 1.7 billion, showing its commitment to shareholder returns in the face of challenges. The company's partnership with Leapmotors in China was successful; in Q4 2024, Leapmotors doubled its sales to 300,000 units and turned a profit. Overall, STLA ranks 8th on our list of theHigh Growth EV Stocks to Invest In. While we acknowledge the potential of STLA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STLA but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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