Buy, Sell or Hold: HEICO CORP (HEI-N) — Stock Predictions at Stockchase

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Home Daily Stock Opinions and Ratings HEICO CORP (HEI-N)

NYSE:HEI

220.85

3.83 (1.70%) 1d

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Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

HEICO Corp, operating under the symbol HEI, is recognized as a leading player in the aerospace sector, showcasing consistent profitability and significant barriers to entry. Despite a recent pullback, the stock has appreciated by 32% over the last year, indicating robust demand for its components. The company reported a 37% revenue growth to $992 million in Q3-2024, slightly missing expectations, but still demonstrated strong earnings with an EPS of $0.97, surpassing estimates. While many experts regard HEI as a high-quality investment, they caution that its current valuation at 55X earnings leaves limited room for error. Thus, the prevailing sentiment is to hold the stock at present, with potential bullishness if the price approaches $220.

Consensus

Hold

Valuation

Overvalued

Similar

Lockheed Martin, LMT-N

HOLD

Aerospace sector has done very well. Demand for components will still be great.

transportation equip & components

BUY ON WEAKNESS

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

HEI has seen a bit of a pullback recently but is still up 32% over the last year. Growth seemed to slow a bit in the last quarter and trading at 55X earnings doesn't leave a whole lot of room for error. Regardless, we don't think a whole lot has changed with a single earnings report here and we don't think a thesis needs to change at this stage. We would be comfortable as a HOLD and would be more of a BUY if it approached $220.
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transportation equip & components

BUY ON WEAKNESS

Has owned shares in the past. Very good business. Consistently profitable. High barriers to entry. Share price not cheap. Would wait for share price to fall before buying.

transportation equip & components

HOLD

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

HEI is a high-quality name in the aerospace industry; the company possesses a track record of compounding EPS by double-digits through acquisitions lasting for decades. In Q3-2024, HEI reported revenue growth of 37% to $992M, slightly below the expectation of $994M, and EBITDA also grew 40% to $2.84B. HEI also reported EPS of $0.97, beating the estimate of $0.92. HEI’s Flight Support segment experienced very strong demand with around 15% organic growth. HEI also runs a moderately leveraged balance sheet with net debt/EBITDA of 2.11x. Overall the result looks okay, in line with expectations, but its valuation is still not cheap enough to add at the current levels. Still, we would be comfortable holding HEI here for the long term.
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transportation equip & components

HOLD

Apart from the most recent earnings, the street loves this name. Selling plane parts, it benefits from the shortage of new plays and increased plane repairs. They have mini-monopolies on these parts and is pushing prices aggressively, a good business model. The valuation has run up, though. He isn't looking at this now. Prefers Raytheon for its performance. You're fine to keep holding it though.

transportation equip & components

BUY ON WEAKNESS

Very high quality business.
Never cheap enough to justify investment.
Company very skilled at M&A.
Strong demand for aircraft parts.
Would invest if share price ever falls.
Sees demand for air travel growing.

transportation equip & components

BUY

HEI makes generic, cheaper airplane parts and has a long track record. Thus, they enjoy wide margins.

transportation equip & components

WAIT

They make OEM for commercial airlines, and electronic components for airlines, the military and NASA. Half the business is doing okay while the other is cocooning. They hit a high a year ago, and has come down after a stock split. The smallcap manufacturers are under the gun in recent years from weakening demand and profitability will be tough looking ahead. He's waiting for a vaccine and an economic pickup before buying more smallcaps, including this.

transportation equip & components

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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

Heico makes replacement parts for old airplanes, and has been thriving on Boeing’s woes. It boasts a 57.74% total return in the past year at a 15.95% profit margin. More impressive, reports David Driscoll, since 1970 Heico has risen 10,000% (on par with Amazon) and its parts have never been in an accident in that time. Brett Girard adds that Heico’s aerospace division will benefit from the cosmic plans of Jeff Bezos and Richard Branson who are building an outer space tourism industry. Luckily, Heico dodged the trade war, because it has no business in China. However, Driscoll warns that Heico has flown too high, too fast, currently trading at a PE just under 50. Wait for a 20% pullback, then hang onto it.

transportation equip & components

BUY

In the last 5 years, its dividend has grown 18% annually. You're paid to wait. Good. Over 10 years, the stock is up nearly 1,000%. They've done a good job supplying replacement parts for planes. Also, a growing segment is outer space, which has a long runway. Their price and dividend has performed very well historically.

transportation equip & components

BUY ON WEAKNESS

HEI is picking up contracts that Boeing is losing. HEI hasn't had an accident in nearly 50 years. But this stock price went too far, too fast, so he sold half his holding to balance his weighting. A solid business. Enter with a half-position. You'll get 20% annual dividend growth. It's risen 10,000% since 1970, on par with Amazon. Likes this company. Buy on 20% weakness, too high now at 42x earnings.

transportation equip & components

PARTIAL BUY

They've done very well on the back of Boeing's woes. They make replacement parts for old planes, but it's not a cheap stock. He's taken a half position so he can be nimble. A good, long-term company despite a little volatility. They're acquisitive and smart with debt. Airlines are a little risky now, so he feels better being in the parts side, like Heico.

transportation equip & components

TOP PICK

An aerospace manufacturing company. Their parts have never been involved in any crashes. They grow their dividends at roughly 20%. He's happy to own it and hold for the next 10-20 years.

transportation equip & components

PAST TOP PICK

(A Top Pick May 27/19, Up 32%) You're exposed to all the airplanes coming back into the fleet with the Max 8 out to cover those routes. Long-term it's been very strong. They have an electronic tech division that deals in outer space which is a growth area with Bezos' and Branson's space plans.

transportation equip & components

TOP PICK

Serial acquirers in aerospace and defense. Net income has grown 19% Y/Y since 1990. No sales in Asia, so they avoid the tariffs. Also provides replacement parts for older planes. Yield is 0.13%. (Analysts’ price target is $105.11)

transportation equip & components

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HEICO CORP(HEI-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 5

Stockchase rating for HEICO CORP is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

HEICO CORP(HEI-N) Frequently Asked Questions

What is HEICO CORP stock symbol?

HEICO CORP is a American stock, trading under the symbol HEI-N on the New York Stock Exchange (HEI). It is usually referred to as NYSE:HEI or HEI-N

Is HEICO CORP a buy or a sell?

In the last year, 5 stock analysts published opinions about HEI-N. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for HEICO CORP.

Is HEICO CORP a good investment or a top pick?

HEICO CORP was recommended as a Top Pick by on . Read the latest stock experts ratings for HEICO CORP.

Why is HEICO CORP stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is HEICO CORP worth watching?

5 stock analysts on Stockchase covered HEICO CORP In the last year. It is a trending stock that is worth watching.

What is HEICO CORP stock price?

On 2025-02-14, HEICO CORP (HEI-N) stock closed at a price of $220.85.

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