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Don't Miss These 3 Hidden Aerospace Gems Before They Take Off
Written by Nathan Reiff. Published 10/9/2025.
Key Points
- The aerospace industry is massive and growing quickly, providing fresh opportunities to investors willing to look at less-known or smaller firms.
- Three such companies include EHang, Ducommun, and Eve Holding, although each also carries risks.
- These firms operate in the AAV, eVTOL, and engineered products and integrated systems spaces, providing a variety of access points to the industry.
The U.S. aerospace industry sits at the intersection of defense and commercial aviation. It has benefited from substantial government support and rising consumer demand, producing nearly $1 trillion in industry-wide sales in 2024. The sector remains active in 2025, offering investors opportunities across companies of various market capitalizations and levels of recognition.
As a fast-growing sector, aerospace includes many smaller firms that may be unfamiliar to typical investors. Three such companies are EHang Holdings Ltd. (NASDAQ: EH), Ducommun Inc. (NYSE: DCO), and Eve Holding Inc. (NYSE: EVEX). Each has a market value well under $2 billion and limited brand recognition among U.S. investors, yet each also has the potential to appreciate significantly. Of course, these opportunities come with risks—sometimes sizable—and investors should be mindful of the potential for losses.
EHang's Dominance in eVTOL Operations Could Signal Big Gains Ahead
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Chinese firm EHang has been active in the autonomous aerial vehicle (AAV) space for more than a decade, producing both passenger and unmanned vehicles. As a pre-profit company, EHang has posted impressive results: in the second quarter, revenue rose 44% year-over-year with a gross margin of 62.6%. The company sold and delivered 68 electric vertical takeoff and landing (eVTOL) aircraft—39% more than in the same quarter a year earlier.
EHang has been effective at building demand and expanding its customer base, particularly in Asia. Its EH216 passenger vehicle is a standout, with more than 150 units ordered in the most recent quarter alone. Perhaps most notable is EHang's progress versus competitors—including larger names like Joby Aviation Inc. (NYSE: JOBY)—in the race to operate passenger-carrying air taxis.
The urban mobility market is expected to grow rapidly, and EHang's head start in certification, commercialization, production, and operations could give it a meaningful advantage as the technology scales. That said, the company has not yet achieved consistent profitability and carries investor risk. Still, eight of nine analysts rate it a Buy, projecting roughly 40% potential upside.
Defense Operations Outpace Commercial Aerospace for Ducommun
Ducommun manufactures electronic assemblies, cable and wire harnesses, and connector systems for aerospace and defense programs. With record second-quarter revenue exceeding $202 million, the company has recently expanded its defense business. Sales in that segment rose 16% year-over-year, driven by strong demand from missile and radar programs.
Other positives include a sharp improvement in cash flow—more than $22 million last quarter versus under $4 million a year earlier—debt restructuring, consolidation of facilities to streamline manufacturing, and record gross margins of 26.6%.
A potential weakness is Ducommun's commercial aerospace business, which has lagged other segments. That perceived softness may have contributed to a nearly 10% rise in short interest in DCO shares over the past month. Still, Wall Street sentiment is broadly favorable, with six of seven analysts rating it a Buy.
High-Reward, High-Risk Play With Eve Holding
Eve Holding is a speculative, high-risk penny stock suitable only for investors with a strong tolerance for volatility. The company is the parent of Eve Air Mobility, which develops a short-haul passenger and cargo eVTOL.
One major positive for Eve is a partnership with Brazilian aerospace company Embraer S.A. (NYSE: ERJ), under which Embraer will support Eve with plant operations and other manufacturing processes. For a small company, that support could accelerate efforts toward commercial production.
However, Eve delayed a planned test flight for its EVE-100 vehicle earlier this year and now expects certification to extend into 2027. An August capital raise of $230 million should fund operations for the near term, but further delays or additional funding needs could be damaging.
Analysts are divided on EVEX—some rate it a Buy, others a Hold or Sell—but the stock carries upside potential of more than 37%, indicating possible growth for investors willing to accept the elevated risk. (Analyst forecasts.)
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