Loar Holdings Inc. (LOAR): Billionaire David Abrams Is a Big Admirer of This Stock

Loar Holdings Inc. (NYSE:LOAR) is one of the 12 Best Stocks to Buy According to Billionaire David Abrams.

Loar Holdings Inc. (NYSE:LOAR) is a relatively recent addition to the 13F portfolio of Abrams Capital Management, compared to other long-term holdings. The fund purchased a stake in the company back in the second quarter of 2024. Back then, this position comprised over 38 million shares. Abrams trimmed this holding by nearly 14% during the second quarter of 2025, bringing the shares owned to around 32 million. Loar remains the largest holding of the fund. The company designs, manufactures, and sells aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, as well as electro-mechanical and engineered materials.

READ MORE: What Makes Loar Holdings (LOAR) a Growth Compounder?

Loar Holdings Inc. (NYSE:LOAR) is popular among elite investors on Wall Street for a number of reasons. One of these is that the company specializes in acquiring small, niche aerospace companies and integrating them into its higher-margin platform. The late 2025/early 2026 acquisitions of LMB Fans & Motors and Harper Engineering have been key catalysts. Hedge funds are also betting that Loar can expand the Adjusted EBITDA margins of these acquired companies to its corporate target of 40%. Management recently raised its 2026 net sales target to $640 million–$650 million specifically because of these successful integrations.

While we acknowledge the risk and potential of LOAR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LOAR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years

Disclosure: None. Follow Insider Monkey on Google News.