ACHR Underperforms Industry in the Past 6 Months: Time to Buy or Hold?

Archer Aviation Inc. ACHR shares have lost 23.5% in the past six months, underperforming the Zacks Aerospace-Defense industry’s growth of 10.4% as well as the broader Zacks Aerospace sector’s gain of 10.5%. It has also lagged the S&P 500’s gain of 10.5% in the same time frame.

However, a stellar performance can be seen in the share price return of other industry players like Lockheed Martin LMT and L3Harris Technologies LHX, which have witnessed a surge of 46.3% and 29.3%, respectively, in the past six months.

With ACHR shares declining over the past six months, investors may have mixed views. Some may remain cautious, while others may see the decline as an opportunity. Before deciding whether to buy, hold or sell, it is important to review whether the company’s fundamentals support long-term growth or if near-term challenges are likely to persist. Evaluating ACHR’s growth prospects and risks can help in making a well-informed investment decision.

Tailwinds for ACHR

Archer Aviation continues to strengthen its position in the eVTOL market through technology-driven initiatives and international expansion efforts.

In January 2026, Archer Aviation announced plans to develop and deploy next-generation Artificial Intelligence technologies for aviation using NVIDIA’s IGX Thor platform. The company intends to use Physical AI to improve aircraft safety, airspace integration and autonomy-ready systems. Archer Aviation plans to demonstrate this NVIDIA-enabled technology at its recently acquired Hawthorne Airport facility in central Los Angeles, which is expected to serve as the operating base for its planned Los Angeles air taxi network as well as a testing site for AI-based aviation solutions.

In the same month, Archer Aviation entered into a strategic partnership with the Government of the Republic of Serbia, which is seeking to support the adoption of electric air taxis across Europe. Under this agreement, Serbia named ACHR as its preferred eVTOL partner and holds an option to purchase an initial fleet of Midnight aircraft. The arrangement allows for the purchase of up to 25 aircraft, subject to regulatory and legal approvals, marking a key step in Archer Aviation’s expansion into the European urban air mobility market.

Risks to Watch

While Archer Aviation shows near-term potential, its long-term outlook remains uncertain. The eVTOL industry is still in its early stages, and the company’s success will depend on its ability to design, certify and scale production as the market evolves. The pace of industry development and the level of demand for eVTOL aircraft will play a key role in shaping results. In addition, concerns around safety, noise levels and affordability could affect public acceptance and may constrain broader adoption.

Earnings Estimates for ACHR

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

The consensus estimates for its 2026 loss have remained the same over the past 60 days.

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 2.87X compared with its industry average of 6.98X.

Its industry peer, L3Harris Technologies, is also trading at a discount. LHX is trading at a P/B TTM of 3.33X. However, Lockheed Martin is trading at a P/B TTM of 21.35X.

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.

Its industry peers, Lockheed Martin and L3Harris Technologies, also maintain current ratios above one. LMT has a current ratio of 1.09, while LHX holds 1.19.

What Should an Investor Do?

Archer Aviation offers a mixed investment outlook at current levels. While the stock’s discounted valuation, stable earnings estimates and strong liquidity provide some support, uncertainty remains due to the early stage of the eVTOL industry and execution risks related to certification and production scale-up. As a result, existing investors may consider holding the stock while tracking the company’s progress on technology development, partnerships and regulatory approvals. New investors may prefer to wait for clearer signs of sustained commercial momentum.

ACHR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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