It takes courage to buy beaten-down growth stocks during a stock market sell-off. But long-term investors know that it’s better to focus on where a company could be several years from now than get too caught up in short-term fluctuations in stock prices.
Archer Aviation (NYSE: ACHR) has sparked excitement from investors interested in technology and electric vehicles (EVs). But the company is still a long way from being consistently profitable.
Industrial automation and robotics giant Rockwell Automation (NYSE: ROK) has seen its valuation fall to compelling levels.
Exchange-traded funds (ETFs) offer investors diversification and the ability to own several stocks under one ticker. The Invesco WilderHill Clean Energy ETF (NYSEMKT: PBW) could appeal to bold investors interested in small-cap clean energy companies beyond Archer Aviation.
Here’s why both stocks and the ETF are worth a closer look in April.
Scott Levine (Archer Aviation): Although roiling markets may be rattling some investors’ nerves and motivating them to load up on defensive positions, those with higher thresholds for volatility are turning to growth stocks like Archer Aviation. With shares of the electric vertical takeoff and landing (eVTOL) company plunging about 33% this year (as of this writing), Archer stock looks increasingly attractive — especially with the company’s recent successes finding new partners and progressing toward the requisite Federal Aviation Administration (FAA) certifications.
Archer is continuously attracting customers for when its aircraft are ready to take flight. Most recently, it announced a deal valued up to $30 million with Ethiopian Airlines. Archer will provide its Midnight aircraft as well as pilots to Ethiopian Airlines, which will, in turn, provide air taxi service to customers. This follows a similar deal it inked with Abu Dhabi Aviation two months ago, which will also see a deployment of Midnight aircraft to operate in the United Arab Emirates.
In the U.S., Archer has signed noteworthy deals with industry leaders such as United Airlines, which has agreed to purchase up to $1.5 billion of Midnight aircraft and a deal with Southwest Airlines to develop air taxi routes in California.
And it’s not only the civilian market where Archer aims to take hold. In late 2024, the company announced a partnership with Anduril to explore the development of a vertical takeoff and landing aircraft for defense purposes.
After receiving the Part 141 certificate from the FAA enabling it to begin training pilots, Archer is assembling its application for Part 142, the final certification it needs before it can start commercial operations — a milestone it expects to achieve this year.
