Scott Levine and Lou Whiteman, The Motley Fool
5 min read
In This Article:
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Joby Aviation continues to make progress toward reimagining urban air travel.
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Southwest Airlines is the slow and steady choice for all but the most risk-tolerant investors.
With the S&P 500 down more than 3% year to date (as of this writing), many investors aren't feeling so motivated to add positions to their holdings right now. This lack of interest, however, can be shortsighted. Times like these are when savvy investors who recognize the potential of quality companies are loading up on their stocks, positioning themselves for long-term gains.
Joby Aviation (NYSE: JOBY) and Southwest Airlines (NYSE: LUV) are two such aerospace names that have popped up on investors' radars. To help them decide whether it's a smart move to land these aerospace stocks in their portfolios, two Fool.com contributors examine the bull arguments.
Scott Levine (Joby Aviation): It's not often that the opportunity to invest in a nascent industry arises, but this is exactly the case with Joby Aviation. Reimagining how people travel in urban areas, Joby is developing innovative electric vertical takeoff and landing (eVTOL) aircraft that the company will use to provide air taxi service.
Bringing a new type of aircraft to market is a heavy lift, but the company continues to make steady progress toward achieving the requisite Federal Aviation Administration (FAA) certifications. And last month, the company conducted its first piloted flight that included a transition from vertical takeoff to cruise flight and back to vertical.
Lauding its accomplishment, Joby characterized itself as "the first company to routinely perform inhabited testing of an electric air taxi from hover to wingborne flight."
While it works toward FAA certification, Joby is making progress in other areas as well. For one, the company is expanding its factory in California to provide pilot training and better aircraft maintenance, which will serve it well when commercial operations begin.
And it is inking agreements with partners. Last quarter, management announced a partnership with Virgin Atlantic to provide air taxi service at the company's British hubs at London Heathrow and Manchester airports.
Sure, there's a fair degree of risk with Joby since it's in the pre-revenue phase of its development, but investors who are not risk-averse have a great opportunity now with the stock down about 18% since the start of the year.
Lou Whiteman (Southwest Airlines): First, full disclosure: I currently own shares of Joby, and not Southwest. But those Joby shares were bought at a lower price than where they trade today. I'm optimistic about the long-term potential for eVTOLs, but for most investors, Southwest is the better buy today.
