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Heico Corporation (HEI) Stock Analysis

Recovery setup · Catalyst-Driven edge

SellModerate Confidence

Industrials · Aerospace & Defense

Sell if holding. At $293.57, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.6%; Sector modifier (Industrials): -0.7.

HEICO manufactures FAA-approved aircraft component replacement parts (Flight Support Group, 70% of fiscal 2025 net sales of $4,485M) and electronic/electro-optical defense and aerospace equipment (Electronic Technologies Group, 30%). Approximately 31% of net sales come from... Read more

$293.57+8.6% A.UpsideScore 5.4/10#21 of 47 Aerospace & Defense
QualityF-score9 / 9FCF yield1.69%
IncomeYield0.08%(5y avg 0.10%)Payout4.75%sustainable
Stop $273.53Target $318.96(analyst − 10%)A.R:R 0.7:1
Analyst target$354.40+20.7%20 analysts
$318.96our TP
$293.57price
$354.40mean
$418

Sell if holding. At $293.57, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.6%; Sector modifier (Industrials): -0.7. Chart setup: Death cross but MACD improving, RSI 69. Score 5.4/10, moderate confidence.

Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Recent Developments — Heico Corporation

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
V7 quality resilience bonus: +0.2 (Q=7.2 in RISK_OFF)
Strong earnings beat streak (4/4)
High-quality business
Risks
Thin upside margin: 8.6%
Sector modifier (Industrials): -0.7
Negative news sentiment (-0.67)

Key Metrics

P/E (TTM)58.1
P/E (Fwd)46.1
Mkt Cap$41.0B
EV/EBITDA34.6
Profit Mgn15.4%
ROE16.6%
Rev Growth14.4%
Beta0.95
Dividend0.08%
Rating analysts27

Quality Signals

Piotroski F9/9MoatNarrow

Options Flow

P/C0.36bullish
IV49%normal

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerdefense, commercial and defense satellite and spacecraft components31%
    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.'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ev Ebitda
0.0
Pe
2.1
Forward Pe
2.5
Peg Ratio
3.9
Ps
4.2
Analyst Target
6.0
Forward P/E: 46.1xPEG: 2.73

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Support Resistance
1.7
Bollinger
2.1
52w Position
6.2

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Value Rank
2.4
Growth Rank
4.7
Quality Rank
7.9
Best-in-class margins
GatesA.R:R 0.7 < 1.5@spotDeath cross (50MA < 200MA)EARNINGS PROXIMITY 8d<=14d (soft)Momentum 6.5>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
69 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $256.11Resistance $301.10

Price Targets

$274
$319
A.Upside+8.6%
A.R:R0.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Reward/Risk 0.7:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-05-27 (8d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is HEI stock a buy right now?

Sell if holding. At $293.57, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.6%; Sector modifier (Industrials): -0.7. Chart setup: Death cross but MACD improving, RSI 69. Prior stop was $273.53. Score 5.4/10, moderate confidence.

What is the HEI stock price target?

Take-profit target: $318.96 (+8.6% upside). Prior stop was $273.53. Stop-loss: $273.53.

What are the risks of investing in HEI?

Thin upside margin: 8.6%; Sector modifier (Industrials): -0.7; Negative news sentiment (-0.67).

Is HEI overvalued or undervalued?

Heico Corporation trades at a P/E of 58.1 (forward 46.1). TrendMatrix value score: 3.3/10. Verdict: Sell.

What do analysts say about HEI?

27 analysts cover HEI with a consensus score of 3.9/5. Average price target: $354.

What does Heico Corporation do?HEICO manufactures FAA-approved aircraft component replacement parts (Flight Support Group, 70% of fiscal 2025 net...

HEICO manufactures FAA-approved aircraft component replacement parts (Flight Support Group, 70% of fiscal 2025 net sales of $4,485M) and electronic/electro-optical defense and aerospace equipment (Electronic Technologies Group, 30%). Approximately 31% of net sales come from defense/homeland security products and 38% from foreign customers; the company has completed ~107 acquisitions since 1990.

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