AST SpaceMobile (ASTS 1.87%), a company focused on developing low Earth orbit (LEO) satellites for cellular connectivity, went public through a merger with a special-purpose acquisition company (SPAC) slightly more than five years ago. The stock initially closed at $11.81 per share but plummeted to a historic low of $2.01 on April 2, 2024. Its appeal diminished due to numerous delays in launching its first BlueBird Block 1 (BB1) commercial satellites, significant losses, and fierce competition from SpaceX’s Starlink. However, it has recently regained traction, with its stock trading at around $85.
This resurgence can be attributed to partnerships with major telecom companies such as AT&T and Verizon, the successful launch of its first five BB1 satellites in September 2024, and the deployment of its first BlueBird Block 2 (BB2) satellite—capable of processing ten times the data of its predecessor—last December. The company also captured attention with its ambitious target of orbiting 60 satellites by year-end, with a long-term goal of over 240 satellites.
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AST’s recovery has surprised many investors who overlooked its short-term drivers, and analysts predict a revenue increase from $71 million in 2025 to $1.92 billion by 2028, spurred by new agreements and an expanded satellite fleet. However, with a market capitalization of $26 billion, much of this expected growth is already reflected in its stock price, valued at 14 times its anticipated 2028 sales.
While AST has potential for further growth, investors might want to consider two other undervalued stocks—Nio (NIO 2.28%) and Joby (JOBY +3.75%)—which also have near-term catalysts that could boost their stock prices in the upcoming years.
Why are Nio and Joby underappreciated?
Nio, a Chinese electric vehicle manufacturer, offers a diverse array of sedans and SUVs, setting itself apart with battery swapping technology that allows quicker replacements at its swapping stations, making it more efficient than traditional charging. From 2020 to 2025, the company’s annual vehicle deliveries increased from 43,728 to 326,028 units, with revenues growing at a 40% compound annual growth rate (CAGR). Analysts predict a revenue growth rate of 24% CAGR from 2025 to 2028, fueled by more premium vehicle sales, expansion of its Onvo and Firefly sub-brands, better monetization of its battery-swapping stations, and increased sales in Europe.
Despite this growth, Nio’s stock trades at under one times its current year’s sales, primarily due to its high leverage and ongoing losses, compounded by issues stemming from trade tensions, tariffs, and geopolitical factors adversely affecting investor sentiment toward Chinese stocks.
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Joby is at the forefront of the electric vertical take-off and landing (eVTOL) market with its S4 aircraft, designed to seat one pilot and four passengers, cover distances up to 150 miles on a single charge, and reach speeds of 200 miles per hour. Major backers and customers include Toyota, Delta Air Lines, and Uber, in addition to projects for the U.S. Department of Defense.
Although Joby aimed to initiate its first commercial flights in Dubai this year, plans are on hold due to ongoing conflicts in the Middle East. In the U.S., the company is still awaiting Federal Aviation Administration (FAA) approval for its flights. Until this occurs, a significant portion of its revenue will continue to come from its contracts with the Department of Defense.
Assuming commercial flights are approved, analysts anticipate Joby’s revenue to enhance from $53 million in 2025 to $459 million by 2028. The stock may appear expensive at 19 times its 2028 sales valuation, but such a premium could be warranted if the eVTOL market expands dramatically over the next decade.
Why could a few catalysts drive Nio and Joby higher?
Nio’s vehicle margins are poised to improve as it moves towards selling a greater number of high-margin vehicles, and it recorded its first profit in Q4 2025. Should it manage to decrease its losses, reduce debt levels, and demonstrate a sustainable business model, it could be reassessed as a growth stock.
For Joby, its stock could take off once the first commercial flight approvals are granted in Dubai and the U.S. Maintaining its lead in the eVTOL sector could result in substantial returns, especially as these innovative vehicles increasingly replace traditional helicopters.
