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ACHR Underperforms Industry in the Past Month: How to Play the Stock?

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Key Takeaways

  • ACHR shares fell 2.5% in a month, trailing gains in the aerospace industry and the sector.
  • ACHR is pursuing air taxi launches, new engineering hubs and global partnerships to expand eVTOL operations.
  • ACHR trades below industry P/B levels, with improving 2026 loss estimates and a strong current ratio.

Archer Aviation Inc. (ACHR - Free Report) shares have lost 2.5% in the past month, underperforming the Zacks Aerospace-Defense industry’s growth of 7.2% as well as the broader Zacks Aerospace sector’s gain of 9.4%. It has also lagged the S&P 500’s gain of 1.3% in the same time frame.

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Image Source: Zacks Investment Research

However, a stellar performance can be seen in the share price return of other industry players like Lockheed Martin (LMT - Free Report) and L3Harris Technologies (LHX - Free Report) , which have witnessed a surge of 6.4% and 11.7%, respectively, in the past month.

With ACHR shares declining over the past month, some investors may be cautious, while others could see the pullback as a potential opportunity. Before making any decision to buy, hold or sell, it is important to assess whether the company’s fundamentals can support steady long-term growth or if near-term challenges may persist. Evaluating ACHR’s growth prospects and potential risks is essential for determining the most appropriate investment action.

Tailwinds for ACHR

In December 2025, Archer Aviation announced that it has been working with several U.S. cities to apply for approval to launch initial air taxi services under the White House’s eVTOL Integration Pilot Program. The program is designed to speed up the adoption of electric air taxis by helping companies establish real-world operations in major cities. This step supports Archer’s goal of introducing safe and efficient urban air travel in the United States.

In the same month, Archer Aviation announced plans to set up a new engineering hub in South West England. The facility will support the company’s operations in the region and allow it to build a local team through its UK subsidiary. This move reflects Archer’s focus on expanding its engineering capabilities and strengthening its presence in key aerospace markets.

Moreover, Archer Aviation announced a collaboration with Saudi Arabia’s General Authority of Civil Aviation to support the rollout of electric air taxi services in the Kingdom. The partnership focuses on developing a clear regulatory framework aligned with FAA standards to ensure safety and operational consistency. The effort is expected to support early route testing and the introduction of air taxi services in major cities such as Riyadh and Jeddah, as well as key development projects.

The global eVTOL market is expected to grow as more people look for faster urban travel options as sustainable transportation technologies improve. This growth is opening new opportunities for companies investing in the sector. Archer Aviation is in a strong position to benefit as commercial operations expand and regulatory support improves worldwide.

These market trends further strengthen Archer Aviation’s outlook, especially when its Midnight aircraft becomes available for commercial use.

Earnings Estimates for ACHR

The Zacks Consensus Estimate for ACHR’s 2026 losses indicates a year-over-year improvement of 12.6%.

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Image Source: Zacks Investment Research

The consensus estimates for its 2026 losses have improved 1.5% over the past 60 days.

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Image Source: Zacks Investment Research

ACHR Shares Are Trading at a Discount

ACHR stock is trading at a discount, with its trailing 12-month Price/Book (P/B TTM) being 3.32X compared with its industry average of 7.03X.

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Image Source: Zacks Investment Research

Its industry peer, L3Harris Technologies, is also trading at a discount. LHX is trading at a P/B TTM of 2.97X. However, Lockheed Martin is trading at a P/B TTM of 18.60X.

Liquidity Position of ACHR

ACHR has a current ratio of 18.20. The ratio, being more than one, indicates that the company possesses sufficient capital to pay off its short-term debt obligations.

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Image Source: Zacks Investment Research

Its industry peers, Lockheed Martin and L3Harris Technologies, also maintain current ratios above one. LMT has a current ratio of 1.13, while LHX holds 1.14.

What Should an Investor Do?

Archer Aviation presents an attractive case for investors, supported by its discounted valuation, improving earnings outlook and solid growth forecasts. Investors looking for exposure to the aerospace and defense space may consider buying this stock at current levels.

ACHR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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