Specializing in niche aerospace and defense components for industry giants like Boeing, Airbus and Lockheed Martin, Loar has taxied onto Investor's Business Daily's Leaderboard watchlist. Boosted by soaring earnings growth, Loar stock also has landed on IBD 50, IPO Leaders and Stock Spotlight screens.
Loar sports the highest-possible Composite Rating of 99. It shares top billing with Heico and a host of other aerospace and defense stocks. While Loar aims to launch a breakout from a cup-with-handle pattern, turbulence on the market indexes sounds the alarm for caution in making any new buys in this environment.
Savvy Fund Managers Latch Onto Loar Stock
Headquartered in White Plains, N.Y., Loar has established relationships across leading aerospace and defense original equipment manufacturers and Tier Ones worldwide, including Boeing and Airbus.
Loar did not join Heico, RTX and five other aerospace and defense industry peers on the latest list of new buys by the best mutual funds. But 28 funds with an A+ rating from IBD own Loar stock. In another sign of demand, Loar stock also earns a B Accumulation/Distribution Rating and two quarters of rising fund ownership since going public in April of last year.
A combination of solid and steady sales growth and explosive earnings continue to attract top institutional investors.
Over the last eight quarters, Loar has posted revenue gains ranging from 24% to 39%. On March 31, the company generated sales of $110.4 million for the fourth quarter, a 28% year-over-year gain. Loar posted earnings of 11 cents per share. Although based on the prior-year quarter that showed a loss, that marked a 1,200% spike in earnings.
When Loar reports first-quarter numbers on May 20, analysts forecast a whopping 1,441% jump in earnings to 17 cents per share. For the full year, Wall Street expects 75% earnings growth to 74 cents a share. For 2026, Loar is expected to deliver a 30% profit gain to 96 cents per share.
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Loar Tries To Fight Off Market Turbulence
With its sights set on a 90.79 buy point, Loar stock faces strong headwinds from the volatile market indexes.
Down nearly 6% Monday, the stock has again hit resistance at its 21-day exponential moving average. After spiking to a new high, its relative strength line has dipped in recent days. But Loar did show some resilience by coming off Monday's low to reduce the day's loss.
Fellow aerospace and defense stocks like Heico, RTX and Boeing face the same headwinds.
So while Loar sports a promising growth outlook and solid demand from top investors, the current environment for all stocks remains rocky. It's best for investors to keep their powder dry for now and stay focused on risk management and rules for how to buy stocks and when to sell stocks.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
