Joby Rises 82.5% in a Year: Should You Still Buy the Stock in 2026?

Joby Aviation’s JOBY shares have jumped 82.5% in the trailing 12 months, outperforming the Zacks Aerospace-Defense industry’s return of 28.7%. Joby, a leading player in the electric vertical takeoff and landing (eVTOL) space, is benefiting from the bullishness on the eVTOL sector. The impressive performance of JOBY’s shares in a year has resulted in it not only outperforming the industry but also another eVTOL-focused stock, Archer Aviation ACHR.

1-Year Price Comparison

Given JOBY’s impressive rally, investors might wonder if the opportunity to add this high-flying stock to their portfolio has passed and how investors should play now. Let us delve deeper and analyze Joby Aviation’s fundamentals to answer the question.

Joby Nearing Commercialization

JOBY is preparing to begin commercial operations in the near future. As part of its commercialization strategy for air taxi services, Joby Aviation recently completed its acquisition of Blade Air Mobility’s urban air mobility passenger business — a major milestone on the path to launching commercial operations.

This acquisition gives Joby Aviation access to Blade’s well-established network of terminals and its base of loyal passengers in key markets such as New York and Southern Europe. The deal could accelerate Joby Aviation’s entry into commercial service once its eVTOL aircraft receive certification. Furthermore, completing this buyout is likely to give Joby Aviation an early advantage over competitors like Archer Aviation.

Following the acquisition, Joby Aviation and Uber Technologies UBER announced plans to bring Blade’s air mobility services to the latter’s app by 2026. Joby Aviation and Uber have collaborated on advancing the future of urban air mobility since 2019. In 2021, Joby Aviation acquired Uber’s Elevate division, which was instrumental in shaping the urban air mobility industry and creating key tools for market selection, demand forecasting and multi-modal operations.

Joby Aviation recently announced the successful completion of its final international flight demonstration for 2025 at Japan’s Fuji Speedway. The week-long program concluded a year marked by extensive global flight testing and growing operational maturity.

The campaign, conducted in partnership with Toyota Motor TM, involved 14 piloted flights and capped a year in which Joby Aviation completed more than 850 flights across its electric air taxi fleet, surpassing 50,000 total flight miles. Toyota has invested $894 million in Joby Aviation and plans to invest an additional $250 million, bringing the total investment to nearly $1 billion. The most recent $250 million investment by Toyota was made in two tranches. The capital injection aims to expedite Joby Aviation’s certification process and commercial production.

Some Headwinds That Can’t Be Ignored

Joby Aviation is unlikely to be profitable any time soon, as commercial operations have yet to start. The company’s negative return on equity further highlights its lack of profitability.

While Joby Aviation is making notable progress in the fast-evolving eVTOL space, challenges remain in terms of scalability and public acceptance. Only time will tell how the market and customer demand for eVTOLs will turn out. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, JOBY's growth potential may be constrained. Additionally, the risk of battery failure due to high voltage and thermal issues is likely for eVTOL aircraft. 

Technical indicators do not suggest continued strong performance for JOBY. The stock trades below its 14-day moving average, which does not signal robust upward momentum and price stability. JOBY has a  Momentum Score of C.

14-Day Moving Average Data of JOBY Stock

Valuation remains a sticking point. In terms of price-to-book value, JOBY is trading at 12.87X, higher than its industry and Archer Aviation. Like Joby Aviation, Archer Aviation also has a Value Score of F.

JOBY’s P/B TTM vs. Industry & ACHR

Not an Opportune Time to Buy JOBY

The premium valuation reflects confidence in Joby Aviation’s long-term stability, but it also suggests limited near-term upside potential. With the company facing certain risks, like the absence of significant revenues and uncertainties related to commercialization, jumping in now might mean overpaying.

Maintaining a position in this Zacks Rank #3 (Hold) stock seems like a sensible approach for now, while potential investors may prefer to wait for a more attractive entry point.

You can view the full list of today’s Zacks Rank #1 (Strong Buy) stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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