Loma Negra(LOMA) Soars 4.80% on Morgan Stanley Upgrade

Loma Negra(LOMA) shares rose to their highest level since December 2024 today, with an intraday gain of 4.80%.

The strategy of buying Loma Negra (LOMA) shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and relatively stable annualized returns.

Maximum Drawdown: The maximum drawdown during this period was -34.57%, which occurred in May 2024. This significant decline reflects the broader market volatility and the impact of macroeconomic challenges on the Argentine cement industry.

Annualized Returns: The annualized return for this strategy was approximately 2.78% over the past 5 years. While this is a modest return, it demonstrates the resilience of holding Loma Negra shares despite the market fluctuations.

Comparison with Benchmark: The strategy's performance was slightly underwhelming compared to the benchmark, which achieved a higher annualized return of 3.5% over the same period. This suggests that while Loma Negra shares provided some stability, the overall performance could have been better with a more aggressive approach or a longer holding period.

Conclusion: Holding Loma Negra shares for 1 week after they reached a recent high is a conservative strategy that offers stability but may not maximize returns in a volatile market. The strategy is suitable for investors seeking moderate returns with limited downside risk, particularly in the context of macroeconomic uncertainties affecting the Argentine cement industry.

Morgan Stanley has upgraded Loma Negra from 'Equalweight' to 'Overweight' with a price target increase from $13 to $15. This upgrade reflects increased institutional confidence in Loma Negra's growth potential amid expectations of improved economic conditions in Argentina and increased infrastructure spending. The upgrade was announced on May 20, 2025.

The positive sentiment from the upgrade has sparked interest not only in the stock market but also among cryptocurrency traders, indicating broader risk appetite and potential capital flows into regional crypto assets. These factors are contributing to increased trading volumes and price momentum for Loma Negra's stock.