Buy the Dip and Fly! Aim for $7 With Archer Aviation Stock.

Stocks to buy

Here’s a company that could become a household name in a few years. Archer Aviation (NYSE:ACHR) is relatively unknown today, but the company is advancing a transportation sector that’s still in its infancy. Consequently, ACHR stock has zero-or-hero potential and you’ll definitely want to assess your appetite for volatility before getting on board.

Just to recap, Archer Aviation manufactures air taxis, which are more formally known as electric vertical takeoff and landing aircraft. There’s no guarantee that this industry will achieve liftoff in 2024. Therefore, you’ll have to be patient with Archer Aviation stock, but the eventual payoff could be tremendous.

Relax and Be Confident With Archer Aviation Stock

ACHR stock didn’t have a great start to 2024, having lost significant value during January’s first couple of weeks. During times like this, it’s hard to feel like a winner if you have a share stake in Archer Aviation. 

Yet, I encourage investors to play the long game. Archer Aviation is on the leading edge of the eVTOL industry, and this isn’t just my opinion. In fact, the company recently won the “Transportation Design of the Year” award from the MUSE Design Awards.

More specifically, Archer Aviation’s flagship aircraft, called Midnight, won the award. Really, the volatility of Archer Aviation stock isn’t a reflection of the company’s progress in the eVTOL field. Nor is it an indication of Archer Aviation’s cash runway, which should last for a long time. As of Sept. 30, 2023, the company had access to nearly $600 million of liquidity.

Here’s the Number to Watch With ACHR Stock

Last year, ACHR stock hit the $7 resistance level multiple times before falling back down. That’s frustrating, but as the old saying goes, resistance levels are meant to be broken.

Keep your eye on $7 throughout 2024, but don’t obsess over it too much. The eVTOL industry is just getting started, and investors should see this as a marathon, not a sprint.

Archer Aviation stock will make big moves in both directions, but this isn’t a fly-by-night operation. Notably, Archer Aviation already has a purchase order from a company in the United Arab Emirates (UAE) for up to 100 of Midnight aircraft. This agreement has a potential total of approximately $500 million.

Furthermore, Archer Aviation is preparing to launch electric eVTOL aircraft services in India in 2026. On top of all that, Archer Aviation is working with another company to accelerate the adoption of interoperable fast-charging systems for eVTOL aircraft.

Archer Aviation is an innovator, not an imitator. If you envision robust, multi-year, global growth for the eVTOL industry, it makes perfect sense to buy and hold ACHR stock.

ACHR Stock: $7 Could Just Be a Layover Target

The air-taxi market is just taxiing down the runway in 2024. The risk is elevated for Archer Aviation stockholders, so assume that near-term volatility will be the norm.

Sooner or later, however, ACHR stock should break through $7 once and for all. The sky is truly the limit after that. Then, I expect the financial media to start putting Archer Aviation on the front page and buzzing about the eVTOL market. So, if you’re patient and can handle the turbulence, feel free to buy and hold a small share position in Archer Aviation.

On the date of publication, David Moadel 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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Articles You May Like

Berkshire Hathaway operating earnings jump 28% in the fourth quarter, cash pile surges to record
Exit Now! 3 Tech Stocks to Sell in February 2024.
Exit Now! 3 Social Media Stocks to Sell in February 2024
Looming Layoffs? 3 Companies That May Be the Next to Drop the Axe.
3 Growth Stocks to Buy and Hold to Build Future Fortune