LOAR designs, manufactures, and sells components for aircraft, aerospace, and defense systems. It supplies companies throughout the world, from airlines to defense companies. The company went public a little more than a year ago. It has been able to grow in that time, including an aftermarket business that now represents 55% of total sales and a rising defense segment. LOAR is also in growth mode, having acquired companies in the past and looking to bring more into the fold soon (two acquisitions are currently pending).
As for its finances, Loar’s fourth-quarter fiscal 2024 report showed record annual sales, up 15% over the year prior, to almost $403 million. Aftermarket sales rose 15% for the year, commercial sales jumped 16%, and defense sales were up 39%. New products and strong demand drove the defense gain. LOAR expects more growth in 2025, offering guidance of net sales of $480 million to $488 million, adjusted EBITDA between $180 million and $184 million, and net income from $58 million to $63 million.
It’s no wonder LOAR shares have gained 28% this year – and they could grow more. Based on MAPsignals data, investors are betting heavily on the forward picture of the stock.
Institutional volumes reveal plenty. In the last year, LOAR has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.
Each green bar signals unusually large volumes in LOAR shares, pushing the stock higher:
Plenty of industrials names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Loar.
Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, LOAR has had strong sales growth:
Source: FactSet
Also, the one-year EPS outlook is estimated to increase by +31.3%.
Now it makes sense why the stock has been powering to new heights. LOAR is gaining due to its strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
LOAR has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times recently. The blue bars below show when LOAR was a top pick…benefiting from Big Money support:
Tracking unusual volumes reveals the power of money flows.
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