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Joby Aviation (JOBY) Plans New Aircraft Production Facility

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Joby Aviation (JOBY - Free Report) , focused on developing electric vertical take-off and landing (eVTOL) aircraft for commercial passenger service, intends to build a new manufacturing facility in Dayton, OH. A 140-acre site has been selected for the purpose.

The facility will have a capacity to deliver up to 500 aircraft annually. The exercise can generate about 2,000 jobs. Construction for the new facility is expected to start next year, with completion scheduled for 2025. Joby intends to invest up to $500 million as it ramps up operations at the site.

The selection of Dayton as the site's location is significant. It is considered the birthplace of aviation since the Wright Brothers, who invented and flew the first powered aircraft, lived and worked in Dayton.

Joby’s production aircraft can carry a pilot and four passengers at speeds of up to 200 mph, with a range of up to 100 miles. The company intends to operate these planes as part of aerial ridesharing networks in cities and communities across the globe from 2025.  By doing so, Joby intends to develop its partnership with the likes of Delta Air Lines (DAL - Free Report) .

Price Performance

JOBY shares have had a dream run on the bourse this year, gaining 103.9% year to date, against its industry’s 5.1% uptick.

Zacks Investment Research
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Zacks Rank & Key Picks

Joby Aviation currently carries a Zacks Rank #3 (Hold). Investors interested in the Zacks Transportation  sector may consider stocks like Covenant Logistics (CVLG - Free Report) and Air Canada (ACDVF - Free Report) . CVLG and ACDVF currently carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, asset-light warehousing, transportation management and freight brokerage capability.

CVLG’s cost-control efforts are commendable. The stock has witnessed the Zacks Consensus Estimate for 2023 earnings revised 7.44% upward in the past 60 days.

An uptick is aiding Air Canada in passenger traffic. Recently, management announced plans to launch a new year-round route between Montreal and Madrid. The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand.

The Zacks Consensus Estimate for current-year earnings has jumped 57.1% in the past 60 days. ACDVF has outshined the Zacks Consensus Estimate in two of the past four quarters (missing the mark in the other two).

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