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Talk about a stock that has it all! Loar Group (LOAR) is young but not too young, having launched its IPO on April 25 last year. Its earnings rose more than 1,000% year over year last quarter, as sales rose 28%. Quarterly sales and earnings have both grown at least double digits this past year, and triple digits for two quarters’ EPS growth. And its outstanding ratings just got even better.
The IBD SmartSelect Composite Rating for White Plains, N.Y.-based Loar climbed from 94 to a near-best 98 Thursday. The upgraded Composite Rating shows that Loar stock is among the top 2% of stocks for a group of key fundamental and technical stock-picking criteria.
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Loar Builds Global Aerospace/Defense Components Network
Loar designs, makes and sells niche aerospace and defense components. The company says it’s assembling a business platform through a strategic global alliance of companies that build and supply aerospace/defense products. Loar says on its website that it “specifically acquires and grows companies within their markets.”
However, even highly rated stocks like Loar weren’t impervious to the tariffs sell-off that slammed the stock market Thursday, and Loar was down 1.2% in afternoon trading, just below 76. However, like other top-notch stocks it bounced from a steep morning drop to 73.
Loar closed its first trading day nearly a year ago at 48.80. After its IPO it shot up to 96.99 on Dec. 9. This year it fell to a 62.11 low on March 13. Despite the negative effect tariffs have had on the market, it’s of the few stocks that’s risen this month. It’s up about 65% in a year.
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The Number Of Funds Holding LOAR Stock Jumps
Loar’s C- Accumulation/Distribution Rating shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks. However, the number of funds holding Loar shares rose from 35 last June to 287 in the December-ended quarter. Despite market correction this quarter, the number of funds holding LOAR stock climbed further, to 323 in March.
Loar also has an 80 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 80% of all stocks. And it has a strong B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A tops.
In Q4, the company reported an 11-cent per share profit, reversing from a 1-cent loss the same quarter a year earlier. Revenue for the small-cap company grew 28% to $110.4 million. The Street expects 17 cents profit this quarter on a 23% rise in sales to $112.6 million.
Loar Holdings holds the No. 3 rank among its peers in the 71-stock Aerospace/Defense industry group. Elbit Systems (ESLT) is the top-ranked stock in the group.
This article was created automatically with Stats Perform’s Wordsmith software using data and article templates supplied by Investor’s Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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