With traffic congestion worsening in major cities, the demand for advanced transportation solutions like electric air taxis is gaining momentum. This trend is driving growth in the electric vertical takeoff and landing (eVTOL) space, benefiting companies such as Archer Aviation ACHR and Eve Holding EVEX. Progress on regulatory approvals, strong pre-order activity from airlines and operators, and ongoing improvements in battery technology, autonomy and low-noise propulsion systems are further strengthening the sector’s outlook.
Archer Aviation is focused on both manufacturing and selling its eVTOL aircraft to partners while also planning to operate its own air taxi network. In contrast, Eve Holding is building not only its aircraft but also a broader urban air mobility ecosystem, which includes service support and air traffic management solutions.
Additionally, the White House executive order issued in July 2025 to accelerate eVTOL integration has boosted investor interest in the space. This brings up an important question for investors: between ACHR and EVEX, which stock offers better upside potential?
Tailwinds for ACHR
In March 2026, Archer Aviation moved a step closer to commercial operations as the U.S. Department of Transportation and the Federal Aviation Administration selected its partners in Texas, Florida and New York for the White House’s eVTOL Integration Pilot Program (eIPP). This program creates a clear pathway to introduce electric air taxis in the United States and supports the launch of a new category of aircraft, marking a major milestone for the industry.
In February 2026, Archer Aviation announced a collaboration with Starlink to bring high-speed, reliable internet connectivity to its Midnight air taxi. Under this agreement, the company will integrate Starlink’s low-Earth-orbit satellite system into its aircraft, enabling stable and low-latency connectivity during operations.
Tailwinds for EVEX
In March 2026, Eve Air Mobility expanded its presence globally by entering into a strategic partnership with Alt Air, an Advanced Air Mobility company based in Sydney, Australia. As part of this collaboration, Alt Air is also working with Skyports Infrastructure to support future eVTOL operations across New South Wales and Queensland. This development highlights Eve Holding’s efforts to build a strong network and support the rollout of urban air mobility services in new markets.
In February 2026, Eve Holding signed its second binding order with Tokyo-based AirX, a leading air mobility service provider in Japan. The deal includes the purchase of up to 50 eVTOL aircraft, strengthening the company’s order pipeline. This agreement reflects growing customer confidence in Eve Holding’s offerings and supports the expansion of sustainable air mobility solutions in Japan.
How Does the Zacks Consensus Estimate Compare for ACHR & EVEX?
The Zacks Consensus Estimate for Archer Aviation’s 2026 loss per share implies a year-over-year decline. The stock’s near-term bottom-line estimates have moved south over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Eve Holding’s 2026 loss per share suggests a year-over-year improvement. The stock’s 2026 bottom-line estimates have moved south over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: ACHR vs. EVEX
EVEX has outperformed ACHR in the past month. Shares of EVEX have lost 13.3% compared with ACHR’s decline of 21.9%.
Image Source: Zacks Investment Research
Valuation for ACHR & EVEX
EVEX trades at a forward 12-month Enterprise Value/Sales (EV/S F12M) multiple of 26.53X compared with ACHR’s 70.05X, making the former relatively more attractive from a valuation perspective.
Conclusion
Both Archer Aviation and Eve Holding are benefiting from the growing demand for electric air taxis. ACHR is making progress in regulatory approvals and partnerships, which supports its plans to launch services.
However, Eve Holding appears to have a stronger position, given its improving earnings outlook, better price performance and more attractive valuation. The company is expanding globally through new partnerships and strengthening its order book with recent deals.
EVEX currently carries a Zacks Rank #3 (Hold), while ACHR carries a Zacks Rank #4 (Sell).
You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Archer Aviation Inc. (ACHR): Free Stock Analysis Report
Eve Holding, Inc. (EVEX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).