Think It's Too Late to Buy Archer Aviation? Here's the Biggest Reason Why There's Still Time.

For those who found Archer Aviation (NYSE: ACHR) flying onto their radars recently, the stock's rise has undoubtedly been noteworthy. Over the past six months, shares of the innovative air taxi stock have soared nearly 150% higher, while the S&P 500 has climbed about 14%. Consequently, prospective investors may feel that the time to land Archer stock in their portfolios has passed.

But this is far too shortsighted. There's reason to believe that shares of Archer can ascend even more, gaining even higher altitudes.

Preparing for liftoff

From receiving important Federal Aviation Administration (FAA) certifications to inking new deals in the United Arab Emirates (UAE), Archer Aviation has provided investors with plenty to celebrate in 2024, so it's unsurprising that shares of the electric vertical takeoff and landing (eVTOL) stock have raced higher. Should the company succeed at achieving its 2025 goals, it's likely that the stock will climb even higher into the wild blue yonder.

One success, for example, would be receiving the critical FAA type certification. Archer estimates that it has supplied about 12% of the total compliance verification documents in the final phase of the FAA certification process. If Archer makes significant progress toward achieving the type certification, investors should bid the stock higher.

Also, Archer expects to start producing aircraft in early 2025 for use in commercial operations, planning to ramp up production through the year and resulting in a production cadence of two aircraft per month by the end of the year. Should the company proceed as planned and start to provide air taxi service to customers in the UAE by the end of 2025, investors should celebrate the company's success and drive the stock higher.

Will growth investors hit the target with Archer Aviation?

Innovating in the aviation industry is a complex business, but Archer has navigated the process deftly so far. At this point, growth investors comfortable with the inherent risks of a pre-revenue company like Archer should certainly not be dissuaded from picking up shares after the stock's recent rise, as it may very well soar even higher.

Should you invest $1,000 in Archer Aviation right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.