The Smartest Growth Stock to Buy With $1,000 Right Now

Source The Motley Fool

Key Points

  • Investors began bailing on Archer Aviation after its earnings report.

  • However, investors are focused too much on short-term cash burn and not enough on long-term progress.

  • Recent weakness makes now an opportune time to enter a position.

  • 10 stocks we like better than Archer Aviation ›

Archer Aviation (NYSE: ACHR) is one of several entry-level companies looking to commercialize electric vertical takeoff and landing (eVTOL) technology. For much of 2025, eVTOL stocks were a hot investing trend.

But since late last year, however, enthusiasm for the space waned. Blame this mostly on investor impatience. Companies like Archer, as well as competitor Joby Aviation, have burned through hundreds of millions in cash and are making slow progress at commercialization.

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Considering Archer's latest post-earnings drop, this impatience persists. Still, considering ongoing developments, this impatience could give way to more bullish sentiment down the road.

That's why I think Archer remains one of the most promising growth stocks that you can buy today.

An electric vertical takeoff and landing (eVTOL) aircraft sits on the tarmac.

Image source: Getty Images.

Why Archer Aviation slumped after earnings

Archer Aviation released its latest quarterly earnings report on March 3. Given its pre-revenue status, the focus of the earnings call was current cash burn and future guidance. For the fourth quarter of 2025, Archer reported negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $137.9 million, versus analyst estimates calling for negative adjusted EBITDA of $122 million.

Adjusted EBITDA guidance for the current quarter fell even further short of expectations. Management anticipates negative adjusted EBITDA of between $160 million and $180 million in the first quarter. That's well above analyst forecasts calling for negative adjusted EBITDA of around $110 million.

In short, there was a good reason for investors to react negatively to earnings, explaining the stock's immediate post-earnings drop of over 10%. While bearishness on this stock keeps rising in the near term, I believe the long-term bull case for Archer Aviation remains intact.

How recent weakness works in your favor

Archer trades for under $7 per share. If post-earnings bearishness persists, the stock could return to its 52-week low of $5.48 per share. But while volatility and turbulence may continue, in hindsight, this recent weakness could prove favorable.

With the latest adjusted EBITDA figures, investors had plenty to sour on about Archer after earnings. However, the latest earnings release also revealed plenty of more promising updates.

Obtaining approval from the Federal Aviation Administration to launch stateside may remain a work in progress, but Archer anticipates launching passenger-carrying flight in the United Arab Emirates. By advancing this commercialization, EBITDA losses could start to come down, with the company getting on the fast track toward break-even or even positive EBITDA.

Archer's $2 billion in liquidity should cover cash burn until at least 2029. Even if the company needs to raise more growth capital, given its current $5 billion market cap, Archer could raise another $500 million to $1 billion, without putting too much more pressure on shares.

It's time to pounce on this beaten-down growth stock

Archer's current slump may not last for long. Success with its UAE launch could help renew confidence in Archer's plans to ultimately launch air taxi operations between major airports and major U.S. cities.

With expectations set so low regarding near-term cash burn, subsequent results could prove better than expected, in turn driving renewed bullishness among investors. Archer remains a very speculative growth stock, but when weighing this risk against potential reward, consider it one of the best growth stocks to invest $1,000 into right now.

Should you buy stock in Archer Aviation right now?

Before you buy stock in Archer Aviation, consider this:

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Thomas Niel 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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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