Heico's Class A shares offer exposure to a high-quality, high-growth industrial franchise with favorable technical momentum and a 1.3-to-1 reward-to-risk in your favor — meaningful but short of the 1.5-to-1 preferred threshold — while the nearly 58-times forward earnings multiple and heavy product concentration in the Flight Support Group (approximately 70% of revenue) keep the asymmetry below the bar for a compelling new entry.
Thesis pillars
- High Quality Industrial Franchise→Stable
- Constructive Technical Momentum↑Improving
- Expensive Valuation Asymmetry Gap→Stable
- +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-A) Stock Analysis
Momentum Cont setup
Industrials · Aerospace & Defense
Sell if holding. Analyst target reached at $249.70 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Flight Support Group (70.0%).
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
Sell if holding. Analyst target reached at $249.70 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Flight Support Group (70.0%). Chart setup: Trend continuation, RSI 66, MACD bullish. Score 5.7/10, moderate confidence.
Passes 7/10 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
No fresh coverage since Aug 26, 2026
Recent Developments — Heico Corporation
Latest news
- NEWS Heico A earnings beat by $0.16, revenue topped estimates - Investing.com — Investing.com Aug 26, 2026 positive
- NEWS Heico Corporation (HEI) Q3 Earnings and Revenues Beat Estimates - Yahoo Finance — Yahoo Finance Aug 25, 2026 positive
- NEWS HEICO ($HEI) Releases Q3 2026 Earnings, Stock Rises - Quiver Quantitative — Quiver Quantitative Aug 25, 2026 positive
- NEWS HEICO Corporation Reports Record Net Income (Up 33%) on Record Operating Income (Up 34%) and Record Net Sales (Up 23%) f — ACCESS Newswire Aug 25, 2026 positive
- NEWS HEICO (NYSE:HEI): Can This Mid Cap Stock Keep Its Momentum? - Kalkine Media — Kalkine Media Aug 25, 2026 positive
Latest item Aug 26, 2026 · Generated 2026-11-05T11:44:08Z.
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
Sell if holding. Analyst target reached at $249.70 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Flight Support Group (70.0%). Chart setup: Trend continuation, RSI 66, MACD bullish. Prior stop was $233.80. Score 5.7/10, moderate confidence.
Analyst target: $255.00 (+2.1% upside). Prior stop was $233.80. Stop-loss: $233.80.
Concentration risk — Product: Flight Support Group (70.0%); Analyst target reached - limited upside remaining; Sector modifier (Industrials): -0.7.
Heico Corporation trades at a P/E of 41.6 (forward 57.9). TrendMatrix value score: 3.2/10. Verdict: Sell.
29 analysts rate HEI-A, with a consensus score of 3.8/5. 1 analysts publish price targets averaging $300.
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.