12 Best Aerospace and Defense Stocks to Buy According to Analysts

5. Archer Aviation Inc. (NYSE:ACHR)

Number of Hedge Fund Holders: 34

Analyst Upside Potential: 53.75%

Archer Aviation Inc. (NYSE:ACHR) is an aerospace company specializing in the design and development of electric vertical takeoff and landing aircraft for urban air mobility networks. Its key technologies include Midnight Aircraft which is designed to carry four passengers and one pilot for short-distance trips of around 20 miles, with minimal charging time between flights. Whereas the Maker Aircraft is a two-seat technology demonstrator used to validate key technologies for the Midnight model.

In Q4 2024, Archer Aviation Inc. (NYSE:ACHR) unveiled a “Launch Edition” program with Abu Dhabi Aviation as its first customer. This program aims to establish a scalable and repeatable playbook for deploying Midnight aircraft in early adopter markets before receiving full FAA certification. Production of the first Midnight aircraft began at its ARC facility in Covington. The company plans to build up to 10 Midnight aircraft this year to support certification testing and deployments with key partners. Looking ahead, Archer Aviation Inc. (NYSE:ACHR) is also developing a hybrid aircraft in partnership with Anduril Industries Inc., targeting strong demand in the defense market and beyond.

The company maintained a strong balance sheet with over $1 billion in liquidity. This financial stability allows the company to execute its business strategies across both civil and defense sectors while exploring new opportunities in AI and other areas. Analysts expect more than 57% upside for the stock, making it one of the best aerospace and defense stocks to buy according to analysts.