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Flying car stocks may have been dismissed even a few years ago as risky fantasies, but today they’re lifting off.
These companies are pioneering today’s future of transportation. Not just an expensive hobby. These vehicles have utility. From emergency services to medical evacuations to cargo and delivery.
But perhaps what’s best about these flying car stocks today is that they can be bought up at attractive entry points. Some are undervalued because of mis-pricing while others are below their long-term inflection points.
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Either way, investors like you can scoop up these undervalued shares at a bargain.
So here are the best flying car stocks you should consider adding to your portfolio.
Joby Aviation (JOBY)
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Joby Aviation (NYSE:JOBY) is a pure-play flying car industry stock. This electric VTOL company has strong government backing.
It has a contract with the U.S. Air Force and plans to deliver its first eVTOL to a customer in 2024.
There’s a good reason to consider that JOBY stock is undervalued. It was recently ranked as the most promising project in the Urban Air Mobility market by the Advanced Air Mobility Reality Index (AAM Reality Index) from SMG Consulting.
The index, updated monthly, gave Joby a score of 8.7 out of 10. The ranking criteria consider factors like funding, leadership team, technology readiness, certification progress, and production readiness.
Another reason is that JOBY has no long-term debt and trades below the analyst consensus price target of $8.80. Its performance year to date has been stellar, gaining 117.31%. It has continued to trade at a stable trendline since August and there’s upside momentum, which suggests a higher stock price could soon be on the cards.
Xpeng (XPEV)
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Xpeng (NYSE:XPEV), a Chinese automaker known for manufacturing electric cars since 2017, is making strides in the flying car market. The company’s subsidiary, Xpeng Aeroht, is Asia’s largest flying car company.
According to Barron’s XPEV stock has gained traction on Wall Street, with BofA Securities analyst Ming Hsun Lee upgrading it to “Buy” from “Hold” and setting a price target of $22, up from $16.30.
This optimism stems from a $700 million investment by Volkswagen. This kind of institutional investment is a boon for startups like XPEV.
On the technicals, XPEV shows a clear bullish bias. It trades above its long-term moving averages, in addition to there being a strong linear regression channel to the upside. Its price-to-sales (P/S) ratio stands at only 5.60, making it a relative bargain compared with other flying car stocks.