These 2 Stocks Are Up More Than 200%, but Still Have Plenty of Room to Run

Knowing When to Let Go

Deciding when to part with a winning stock is a tough call, especially when its value has surged dramatically. The instinct to secure gains or reduce exposure can be strong, but cashing out too early risks missing out on significant future growth. 

Selling a high-performing stock may seem like a safe move, but it often means forfeiting the potential for even greater returns. New investments may not match the momentum of the original winner, and selling triggers tax liabilities that chip away at profits. As legendary investor Warren Buffett suggests, holding onto winners for the long haul is often the smartest strategy. 

By choosing stocks with strong fundamentals and staying committed, investors can avoid the pitfalls of market timing. The following two stocks have more than tripled off their 52-week lows, but still have plenty of room to run.

Archer Aviation (ACHR)

Archer Aviation (NYSE:ACHR | ACHR Price Prediction), a leader in electric vertical takeoff and landing (eVTOL) aircraft, has seen its stock climb an impressive 261% from its 52-week low of $2.82 per share, hitting $10.79 per share yesterday. Despite a recent 15% drop triggered by concerns over rival Joby Aviation (NYSE:JOBY) saying the path to FAA certification may not be as smooth as previously believed, Archer’s long-term prospects remain robust. 

Its recent $850 million stock offering strengthens the eVTOL’s liquidity, with over $1 billion in cash to fund its commercialization plans, including the Midnight aircraft, which is wending its way through the FAA certification labyrinth. Strategic partnerships, such as with Jetex for infrastructure development and Anduril for military applications, position Archer to tap into the $1 trillion urban air mobility market some analysts project the industry to hit by 2040. 

The Wall Street consensus leans toward a “Strong Buy,” with an average price target of $11.75 per share, suggesting 18% upside. Archer’s international test flights in Abu Dhabi and a $500 million deal in Japan further bolster its growth trajectory. 

Despite short-term volatility, Archer’s innovative technology and expanding market presence signal significant potential for future gains.

Robinhood Markets (HOOD)

Robinhood Markets (NASDAQ:HOOD) has delivered a staggering 639% return from its 52-week low, driven by its commission-free trading platform and appeal to younger investors. Trading at $105.68 per share, Robinhood has capitalized on a retail investing boom, with 23 million funded accounts and growing assets under custody. 

Its expansion into margin trading, crypto offerings, and new features like retirement accounts has diversified revenue streams, reducing reliance on transaction-based income. The company’s recent profitability, with positive net income in the second quarter, reflects operational discipline and scalability. 

Robinhood’s acquisition of TradePMR and potential entry into wealth management signal ambitious growth plans. Despite a high valuation at 15 times 2027 projected revenue, its user growth and innovative tools, like AI-driven analytics, position it to capture a larger share of the $7 trillion U.S. brokerage market. 

With no significant setbacks reported recently, Robinhood’s momentum and broadening financial ecosystem suggest it can continue its upward climb.

Key Takeaways