12 Best Aerospace and Defense Stocks to Buy According to Analysts

7. Loar Holdings Inc. (NYSE:LOAR)

Number of Hedge Fund Holders: 32

Analyst Upside Potential: 39.66%

Loar Holdings Inc. (NYSE:LOAR) is a diversified manufacturer and supplier of niche aerospace and defense components. It specializes in designing, manufacturing, and selling a wide range of products that support major aircraft platforms. The company serves three core end markets including commercial aerospace, business jet, and general aviation.

Loar Holdings Inc. (NYSE:LOAR) reported a significant increase in net sales for the third quarter of 2024, reaching $103.5 million. This represents a 25% year-over-year growth, driven by robust demand in both commercial and defense sectors. The company’s strong performance is attributed to its strategic execution and the growing demand for aerospace and defense components. For 2025, the company forecasts net sales between $470 million and $480 million.

It is actively expanding its portfolio through strategic acquisitions. A notable example is the planned purchase of LMB Fans & Motors for €365 million, which is expected to enhance the company’s specialized aerospace and defense component offerings. It is one of the best aerospace and defense stocks to buy according to analysts.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Loar Holdings Inc. (NYSE:LOAR) in its Q3 2024 investor letter:

“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Providing a 40% lift was Loar Holdings Inc. (NYSE:LOAR), a diversified manufacturer and supplier of niche aerospace and defense components. We first added Loar to the strategy on its IPO in April and continued building the position early this quarter. Later, Loar reported higher-than-anticipated revenues and earnings, then boosted its guidance for the rest of the year. Loar forecasted increased growth for all three of its end-markets: aerospace original equipment, aftermarket, and defense.”