The U.S. aerospace industry lies at the convergence of defense and commercial air and has experienced significant government support alongside growing consumer demand, prompting combined industry-wide sales of nearly $1 trillion in 2024. The sector remains hot in 2025, presenting investors with opportunities to target companies in the aerospace business at a variety of market capitalizations and levels of popularity.
As a fast-growing space, aerospace includes a number of smaller firms and others that are likely less familiar to investors without deep knowledge of the landscape. Three such companies include EHang Holdings Ltd. NASDAQ: EH, Ducommun Inc. NYSE: DCO, and Eve Holding Inc. NYSE: EVEX. Each of these firms has a market value well under $2 billion and lacks brand recognition among typical U.S. investors, but each also has the potential to soar in value. Of course, there are also risks—sometimes sizable—to these names, and investors should beware that opportunity comes with the potential for losses as well.
EHang’s Dominance in eVTOL Operations Could Signal Big Gains Ahead
EHang Stock Forecast Today
12-Month Stock Price Forecast:
$26.08
38.65% UpsideModerate Buy
Based on 9 Analyst RatingsCurrent Price$18.81High Forecast$30.40Average Forecast$26.08Low Forecast$20.00EHang Stock Forecast Details
Chinese firm EHang has been in the autonomous aerial vehicles (AAV) space for over a decade, manufacturing both passenger and unmanned vehicles. For a pre-profit company, EHang has achieved impressive results: in the second quarter, it noted a 44% year-over-year (YOY) improvement in revenue at a gross margin of 62.6%. The company sold and delivered a notable 68 electric vehicle take-off and landing (eVTOL) aircraft, 39% above the prior-year quarter’s figure.
EHang has been highly successful at building demand and widening its customer base, with a particular focus on the Asian market. Its EH216 passenger vehicle is among its most popular, having seen more than 150 units ordered in the latest quarter alone. Perhaps most impressive, though, is the way that EHang has beaten competitors—including major players like Joby Aviation Inc. NYSE: JOBY—in the race to operate passenger-carrying air taxis.
The urban mobility market is expected to explode in size, and EHang’s advantages in certification, commercialization, production, and operation could give it a tremendous leg up as this technology continues to proliferate. That said, as a firm that has not yet achieved consistent profitability, EHang presents risks to investors. Still, eight out of nine analysts call it a Buy and project nearly 40% in possible upside.
Defense Operations Outpace Commercial Aerospace for Ducommun
Ducommun Stock Forecast Today
12-Month Stock Price Forecast:
$97.50
0.85% UpsideModerate Buy
Based on 7 Analyst RatingsCurrent Price$96.68High Forecast$101.00Average Forecast$97.50Low Forecast$94.00Ducommun Stock Forecast Details
Ducommun specializes in electronic assemblies, cable and wire harnesses, and connector systems for use in aerospace and defense applications. With record second-quarter revenue of more than $202 million, the company has grown its defense business considerably in recent months. Sales in this area improved by 16% YOY thanks to impressive missile and radar performance.
This firm has many other strong fundamentals to boast about—including skyrocketing cash flow (more than $22 million last quarter compared to under $4 million the prior-year period), a restructuring of its debt alongside consolidation of facilities to streamline manufacturing, record gross margins of 26.6%, and more.
A risk for Ducommun, however, is its commercial aerospace business, which has lagged behind other parts of its operations. Perceived weakness here may have contributed to a nearly-10% increase in short interest in DCO shares in the last month. Still, Wall Street loves this company, with six out of seven analysts rating it a Buy.
High-Reward, High-Risk Play With Eve Holding
EVE Stock Forecast Today
12-Month Stock Price Forecast:
$6.58
36.16% UpsideHold
Based on 6 Analyst RatingsCurrent Price$4.84High Forecast$8.00Average Forecast$6.58Low Forecast$5.00EVE Stock Forecast Details
Investors with a high tolerance for risk might consider Eve Holding. As a penny stock and an early-stage company, this firm is a speculative play with the possibility of significant gains but also a high degree of risk for investors. Eve Holding is the parent company of Eve Air Mobility, maker of a short-haul passenger and cargo transport eVTOL.
On the positive side, Eve recently announced a major partnership with Brazilian legacy aerospace giant Embraer S.A. NYSE: ERJ through which the larger company will assist Eve with plant operations and other vital processes necessary to manufacturing eVTOLs. For a small company like Eve, this is a major boon and one that could accelerate its move toward broad commercialization.
However, earlier this year, Eve delayed a crucial test flight for its EVE-100 vehicle, as the company now expects the certification process to last into 2027. Fortunately, an August capital raise of $230 million should help to fund operations for a sufficient amount of time, although the clock is ticking and any further delays could be disastrous.
Though analysts are split on whether EVEX shares are a Buy, Hold, or Sell, the company does have upside potential of more than 37%, suggesting its potential to provide growth for investors able to tolerate the risk.
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