8 Penny Stocks with Biggest Upside Potential According to Analysts

4. Archer Aviation Inc. (NYSE:ACHR)

Share Price: $2.99

Upside Potential: 240.14%

Number of Hedge Fund Holders: 21

Archer Aviation (NYSE:ACHR) is an aerospace company specializing in designing and developing electrical vertical takeoff and landing (eVTOL) aircraft for use in urban air mobility (UAM) networks. Its eVTOL aircraft hold a competitive edge for being safe, quiet, and sustainable. Midnight, its production aircraft, can carry four passengers and a pilot and is optimized to conduct back-to-back short-distance trips of about 20 miles. It has a minimal charging time between trips.

Archer Aviation (NYSE:ACHR) intends to conduct two complementary lines of business: Archer Direct for the sale of its aircraft to other operators and Archer UAM for a direct-to-consumer aerial ride-share service.

The company is running on a robust operational model, gaining several accomplishments in Q2 2024. It completed Midnight’s first transition flight. Since Midnight is a 6,500-pound maximum takeoff weight aircraft, this feat makes it the largest eVTOL aircraft to have successfully transitioned.

The company also reached two regulatory milestones in the US in the quarter. Both these milestones are critical to attaining FAA certification. It first achieved Midnight’s airworthiness criteria, allowing it to proceed with the final certification process stages. In addition, it is starting to build its own fleet of six aircraft. These aircraft have systems that conform to these requirements, allowing the company to continue credit testing with the FAA.

It has also attained its Part 135 certificate, which allows it to operate eVTOL airlines across the US after Midnight’s type certification. This is a significant milestone, as it will allow Archer Aviation (NYSE:ACHR) to deploy aircraft in critical markets on behalf of its domestic airline customers, such as United and Southwest.

The company is also continually advancing its certification endeavors in particular international markets with exceptional opportunities for expedited deployment. These areas include Korea, India, and the UAE. Archer Aviation (NYSE:ACHR) ranks fourth on our list of the 8 penny stocks with biggest upside potential according to analysts.