IPO Stock Of The Week Loar (LOAR) is approaching a new buy point as the defense stock rebounds from a pullback. The Boeing (BA) supplier is one of the best stocks to watch on Investor's Business Daily's IPO Leaders screen.
Loar produces aircraft spare parts and offers servicing. Its portfolio of more than 15,000 products include angle-of-attack sensors, cockpit door barriers, flight control computers, water purification systems and more. Major customers include Boeing, Airbus, RTX (RTX) and Honeywell (HON).
↑ XWhen the aerospace and defense parts supplier went public in April, it sold 11 million shares for 28 apiece. That came in above its estimated range of 24 to 26, and raised more than $300 million.
On its first day of trading, Loar stock closed at 48.80, soaring 74% above the IPO price, a sign of big institutional demand. It has now more than tripled from the IPO price.
On Aug. 13, Loar reported earnings of 13 cents a share for the second quarter, on sales of $97 million. Year over year, sales jumped 31%. On an organic basis, which includes existing businesses minus acquisitions, sales grew 17%.
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On Oct. 25, the stock decisively broke out above an 80.79 buy point in a flat base, according to IBD MarketSurge analysis. Following a pullback that began in late October, shares are now moving back out of buy range. The 5% buy zone topped out at 84.83. However, the weekly MarketSurge chart identifies an ascending base that offers a 92.17 buy point, so investors could use that buy trigger.
The stock's relative strength line is flashing mixed signals. On the upside, the line hit a new high on the breakout day, a positive sign. But the line has fallen since the start of November. The RS line measures a stock's price action vs. the S&P 500.
IBD Stock Checkup shows that Loar stock has a solid 92 out of a 99 IBD Composite Rating. That makes the Boeing partner an IPO stock to watch right now.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on the Dow Jones Industrial Average and the stock market today.
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