Loar Stock Climbs 28% On A 7-Day Winning Streak

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Loar stock is on a 7-day winning streak, up 28.2% since the run began. That added about $1.6 billion to the company’s market value, which now stands at about $7.5 billion. The stock closed at $79.61 on Tuesday, November 10, 2.1% below its 52-week high of $81.29 and 48.1% above its low of $53.75.

Image from Pixabay

 
LOAR Versus The S&P 500

Returns for LOAR and the S&P 500 over the streak and the periods around it, all ending Tuesday, November 10 and including dividends:
 

Return Period LOAR S&P 500
1 Day 1.3% -0.4%
7 Days (Current Streak) 28.2% -0.8%
1 Month (21 Trading Days) 27.6% -3.6%
3 Months (63 Trading Days) 8.3% -2.7%
Year To Date 17.1% 10.9%
1 Year (252 Trading Days) 6.8% 13.1%

How The Streak Compares With The Market

Over the same 7 trading days, the S&P 500 returned -0.8% including dividends, so the run is mostly Loar’s own story rather than the market’s. Over the past three months the stock is up 8.3%, a window that includes the streak; over the other 56 sessions of that window it was down 15.5%.

What The Numbers Say About The Rally

On the fundamentals, revenue grew 33.8% over the last twelve months, against a median of 8.5% for S&P 500 Industrials stocks; its operating margin is 24.6%, versus a median of 17.5%; and the stock trades at 124.3 times trailing earnings against a median of 25.4. The numbers make the run harder to justify: a multiple well above the median. At this price, the stock is asking a lot of the business.

If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.

One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy

A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?

The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.