Heico operates a genuinely high-quality industrial franchise with a perfect financial health score, best-in-class peer margins, and four consecutive earnings beats averaging approximately 12% positive surprise, but the stock is priced at roughly 49 times forward earnings with only 3.4% upside to consensus — an unfavorable 0.49-to-1 reward-to-risk means the business merits holding but the current setup does not support adding.
Thesis pillars
- High Quality Growth Franchise→Stable
- Consistent Earnings Delivery↑Improving
- Stretched Valuation Thin Upside↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Dec 22, 2025· older than 90 days
Heico Corporation (HEI) Stock Analysis
Recovery setup
Industrials · Aerospace & Defense
Hold if already holding. Not a fresh buy at $337.67, but acceptable to hold if already in. Reasons: Concentration risk — Product: Flight Support Group (70.0%); Thin upside margin: 4.1%.
HEICO Corporation manufactures FAA-approved jet engine and aircraft component replacement parts through its Flight Support Group (FSG, 70% of fiscal 2025 net sales) and designs electronic, electro-optical, and defense equipment through its Electronic Technologies Group (ETG,... Read more
Hold if already holding. Not a fresh buy at $337.67, but acceptable to hold if already in. Reasons: Concentration risk — Product: Flight Support Group (70.0%); Thin upside margin: 4.1%. Chart setup: Death cross but MACD improving, RSI 71. Maintain position. Not compelling to add more. Score 6.4/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 42d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated Oct 27, 2026Recent Developments — Heico Corporation
Latest news
- NEWS Is Heico (HEI) a Solid Growth Stock? 3 Reasons to Think "Yes" - Yahoo Finance — Yahoo Finance Oct 27, 2026 positive
- NEWS HEICO (NYSE:HEI) Reports Bullish Q2 CY2026 - StockStory — StockStory Aug 25, 2026 positive
- NEWS Compared to Estimates, Heico (HEI) Q3 Earnings: A Look at Key Metrics - Yahoo Finance — Yahoo Finance Aug 25, 2026 positive
- NEWS HEICO (NYSE:HEI) Reports Bullish Q2 CY2026 - TradingView — TradingView Aug 25, 2026 positive
- NEWS Heico Corporation (HEI) Q3 Earnings and Revenues Beat Estimates - Yahoo Finance — Yahoo Finance Aug 25, 2026 positive
Latest item Oct 27, 2026 · Generated 2026-11-05T11:34:08Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductFlight Support Group70%10-K Item 1: 'Our Flight Support Group ("FSG")...accounted for 70%, 68% and 60% of our net sales in fiscal 2025, 2024 and 2023, respectively.'
- MEDIUMProductdefense and homeland security products31%10-K Item 1A: 'In fiscal 2025, approximately 31% of our net sales were derived from the sale of defense, commercial and defense satellite and spacecraft components, and homeland security products.'
- MEDIUMGeographicforeign customers38%10-K Item 1A: 'approximately 38% of our consolidated net sales in fiscal 2025 derived from sales to foreign customers'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $337.67, but acceptable to hold if already in. Reasons: Concentration risk — Product: Flight Support Group (70.0%); Thin upside margin: 4.1%. Chart setup: Death cross but MACD improving, RSI 71. Maintain position. Not compelling to add more. Analyst target $351.63 (+4.1%), stop $316.39 (−6.7%), A.R:R 0.3:1. Score 6.4/10, moderate confidence.
Analyst target: $351.63 (+4.1% upside). Analyst target $351.63 (+4.1%), stop $316.39 (−6.7%), A.R:R 0.3:1. Stop-loss: $316.39.
Concentration risk — Product: Flight Support Group (70.0%); Thin upside margin: 4.1%; Sector modifier (Industrials): -0.7.
Heico Corporation trades at a P/E of 56.3 (forward 46.7). TrendMatrix value score: 3.2/10. Verdict: Hold.
29 analysts rate HEI, with a consensus score of 3.8/5. 20 analysts publish price targets averaging $391.
What does Heico Corporation do?HEICO Corporation manufactures FAA-approved jet engine and aircraft component replacement parts through its Flight...
HEICO Corporation manufactures FAA-approved jet engine and aircraft component replacement parts through its Flight Support Group (FSG, 70% of fiscal 2025 net sales) and designs electronic, electro-optical, and defense equipment through its Electronic Technologies Group (ETG, 30%). Net sales reached $4,485.0 million in fiscal 2025, serving commercial airlines, the U.S. Department of Defense, defense prime contractors, and foreign military organizations.