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Should You Buy, Hold or Sell ACHR Stock Ahead of Q3 Earnings?

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Key Takeaways

  • Archer Aviation expanded with Korean Air, Lilium and Cleveland Clinic Abu Dhabi deals.
  • ACHR's valuation remains below industry peers despite a 197.8% share surge.
  • Supply-chain issues, labor shortages and eVTOL adoption risks may limit growth.

Archer Aviation Inc. (ACHR - Free Report) is slated to report third-quarter 2025 results on Nov. 6, 2025, after market close.

The Zacks Consensus Estimate for earnings is pegged at a loss of 20 cents per share, suggesting an improvement from a loss of 24 cents in the prior-year quarter.

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Image Source: Zacks Investment Research

Archer Aviation’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, met once and missed in the other two, the average negative surprise being 24.96%.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings Whispers

Our proven model does not predict an earnings beat for ACHR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Archer Aviation has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Some stocks in the same sector that have the combination of factors indicating an earnings beat are CurtissWright (CW - Free Report) and Rocket Labs (RKLB - Free Report) . CW and RKLB have an Earnings ESP of +1.59% and +25.00%, respectively. Both CurtissWright and Rocket Labs carry a Zacks Rank of 3 at present.

Key Factors to Consider For ACHR’s Q3 Results

Archer Aviation has continued to make significant progress in the eVTOL space through strategic partnerships, key milestones and expansion initiatives. In September 2025, the company revealed that its Midnight aircraft successfully completed its highest altitude flight to date, reaching altitudes of 7,000 feet. These milestone achievements should pave the way to the Midnight aircraft’s accomplishment of FAA certification in the United States, which is anticipated soon.

In August, the company accelerated its defense program with two strategic acquisitions that brought in advanced technologies and expertise, strengthening its position to meet growing demand from government and defense customers. In July, the company began test flights in Abu Dhabi, a key step toward building its presence in the Middle East and moving closer to commercial launch in the region.

Price Performance & Valuation

Archer Aviation’s shares have surged a solid 197.8% in the past year, outperforming the Zacks Aerospace-Defense industry’s growth of 23.7% as well as the broader Zacks Aerospace sector’s rise of 25.1%. It also came in above the S&P 500’s gain of 16.4% in the same time frame.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of CW and RKLB have also surged 55.2% and 333.4%, respectively.

ACHR’s Price-to-Book (Trailing 12 Months)

From a valuation perspective, ACHR’s trailing 12-month price-to-book (P/B) is 3.67X, a discount to its industry’s average of 6.45X. This suggests that investors will be paying a lower price than the company's book value compared with its industry.

Zacks Investment Research
Image Source: Zacks Investment Research

However, its industry peers are currently trading at a premium compared with ACHR. While the trailing 12-month price/book multiple for CW is 8.14, the same for RKLB is 39.77.

Investment Thesis

Archer Aviation shows good short-term growth potential, but its long-term success is still uncertain. The eVTOL market is in its early stages, and the company’s future will depend on how well it can design, build and get approval for its aircraft, as well as how quickly demand for these vehicles grows.

Wider use of eVTOLs may take time as people may have concerns about safety, noise and cost. Without strong public and regulatory support, ACHR’s long-term growth could face challenges.

Additionally, ACHR continues to face industry challenges such as ongoing supply-chain disruptions and a lack of skilled labor. These issues could affect the company’s ability to complete its projects within the planned timelines.

Should You Buy ACHR Before Aug. 6?

ACHR presents a balanced outlook ahead of its third-quarter results. The company’s expanding partnerships, improving earnings trend and solid share performance reflect growing confidence in its long-term vision. However, persistent supply-chain issues, labor shortages and uncertainties in public adoption of eVTOLs continue to pose challenges.

Given these mixed signals, existing investors may consider holding their positions, while those looking to enter the stock should wait for clearer growth visibility after the earnings release.


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