12 Best IPO Stocks to Buy in 2025

9. Loar Holdings Inc. (NYSE:LOAR)

Average Upside Potential as of March 21: 42.18%

Number of Hedge Fund Holders: 32

Loar Holdings Inc. (NYSE:LOAR) designs, manufactures and markets a range of aerospace and defense components for various aircraft and systems. It serves commercial, business, and defense markets. Its product portfolio includes everything from structural components to advanced avionics systems.

In Q3 2024, the company’s net sales surged to $103.5 million, which was a 25% year-over-year improvement. The company is capitalizing on strong growth in both commercial and defense sectors. One of its strongest segments includes the aerospace and defense components segment. For 2025, Loar Holdings Inc. (NYSE:LOAR) forecasts net sales of $470 to $480 million. The company anticipates a net income of between $55 and $60 million in 2025.

Loar Holdings Inc. (NYSE:LOAR) is actively expanding through acquisitions, which includes the planned purchase of LMB Fans & Motors for €365 million. This will broaden the company’s specialized aerospace and defense component portfolio and is expected to close in Q3 2025.

Loar Holdings Inc. (NYSE:LOAR) has been delivering strong financial results and positive growth forecasts, which contributes significantly to TimesSquare Capital U.S. Small Cap Growth Strategy’s performance. Here’s what it said regarding the company 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.”