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Just For You Don't Miss These 3 Hidden Aerospace Gems Before They Take OffWritten 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 and has benefited from significant government support alongside growing consumer demand, producing combined industry-wide sales of nearly $1 trillion in 2024. The sector remains active in 2025, offering investors opportunities to target aerospace companies across a range of market capitalizations and levels of visibility. As a fast-growing sector, aerospace includes a number of smaller firms that may be unfamiliar to investors without deep knowledge of the landscape. 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 typical U.S. investors, but each also has the potential to appreciate considerably. Of course, these opportunities carry risks—sometimes substantial—and investors should be aware that potential rewards come with the possibility of losses. EHang's Dominance in eVTOL Operations Could Signal Big Gains Ahead Chinese firm EHang has been in the autonomous aerial vehicle (AAV) space for over a decade, manufacturing both passenger and unmanned vehicles. For a pre-profit company, EHang has posted notable results: in the second quarter, revenue rose 44% year-over-year (YOY) with a gross margin of 62.6%. The company sold and delivered 68 electric vertical takeoff and landing (eVTOL) aircraft—39% more than the prior-year quarter. EHang has been effective at building demand and expanding its customer base, with a particular focus on the Asian market. Its EH216 passenger vehicle is among the most popular, with more than 150 units ordered in the latest quarter alone. Perhaps most notable is EHang's progress in operating passenger-carrying air taxis, where it has outpaced competitors—including major players like Joby Aviation Inc. (NYSE: JOBY). The urban mobility market is expected to expand rapidly, and EHang's advantages in certification, commercialization, production, and operations could give it a significant head start as the technology scales. That said, as a company that has not yet achieved consistent profitability, EHang carries investor risk. Still, eight of nine analysts rate it a Buy and forecast nearly 40% upside. Defense Operations Outpace Commercial Aerospace for Ducommun Ducommun manufactures electronic assemblies, cable and wire harnesses, and connector systems for aerospace and defense applications. With record second-quarter revenue of more than $202 million, the company has grown its defense business significantly. Sales in this segment rose 16% YOY, driven by strong missile and radar performance. The company also has several solid fundamentals to highlight, including sharply higher cash flow—more than $22 million last quarter versus under $4 million a year earlier—a debt restructuring and consolidation of facilities to streamline manufacturing, and record gross margins of 26.6%. A risk for Ducommun is its commercial aerospace business, which has lagged other segments. Perceived weakness there may have contributed to a near-10% rise in short interest in DCO shares over the past month. Still, Wall Street sentiment is favorable, with six of seven analysts rating it a Buy. High-Reward, High-Risk Play With Eve Holding Investors with a high tolerance for risk might consider Eve Holding. As a penny stock and early-stage company, Eve is a speculative play with the potential for meaningful gains but also a high degree of risk. Eve Holding is the parent company of Eve Air Mobility, maker of a short-haul passenger and cargo transport eVTOL aircraft. On the positive side, Eve recently announced a major partnership with Brazilian aerospace giant Embraer S.A. (NYSE: ERJ), under which Embraer will assist Eve with plant operations and other processes necessary to manufacture eVTOLs. For a small company like Eve, this support could accelerate its path toward broader commercialization. However, earlier this year Eve delayed a crucial test flight for its EVE-100 vehicle and now expects certification to extend into 2027. An August capital raise of $230 million should help fund operations in the near term, although any further delays could be damaging. Though analysts are split on whether EVEX shares are a Buy, Hold, or Sell, the company does have upside potential of more than 37%, indicating possible growth for investors willing to assume the risk.
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