Reasons to Invest in Loar Holdings (LOAR)

Next Century Growth Investors, LLC, an investment Management Company, released its “Small Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The equities market in 2024 saw mixed results in the second quarter. Small-cap indices generally posted negative results, whereas large-cap indices posted favorable results. The strategy returned (3.32)% net of fees in the quarter, compared to a (2.91)% return for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

NCG Small Cap Strategy highlighted stocks like Loar Holdings Inc. (NYSE:LOAR) in its Q2 2024 investor letter. Loar Holdings Inc. (NYSE:LOAR) designs, manufactures, and markets aerospace and defense components. The one-month return of Loar Holdings Inc. (NYSE:LOAR) was 22.22%, and its shares gained 32.98% of their value over the last 3 months. On August 29, 2024, Loar Holdings Inc. (NYSE:LOAR) stock closed at $73.87 per share with a market capitalization of $6.626 billion.

NCG Small Cap Strategy stated the following regarding Loar Holdings Inc. (NYSE:LOAR) in its Q2 2024 investor letter:

“Loar Holdings Inc. (NYSE:LOAR) specializes in the design, manufacture, and sale of niche aerospace and defense (A&D) components across >250 aircraft platforms. 80-90% of their products are proprietary to LOAR, which leads to sticky relationships with OEM and aftermarket customers. A&D demand has been strong and we expect it to continue. We believe LOAR will continue growing by adding new products organically, maintaining pricing above inflation, and executing on selective M&A.”

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Loar Holdings Inc. (NYSE:LOAR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Loar Holdings Inc. (NYSE:LOAR) at the end of the second quarter which was 0 in the previous quarter. While we acknowledge the potential of Loar Holdings Inc. (NYSE:LOAR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Loar Holdings Inc. (NYSE:LOAR) and shared Baron Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.