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→Stable
- Stretched Valuation Thin Upside→Stable
- +1 more pillar — see the Why tab for full reasoning
Heico Corporation (HEI) Stock Analysis
Industrials · Aerospace & Defense
Hold if already holding. Not a fresh buy at $362.09, but acceptable to hold if already in. Reasons: Concentration risk — Product: Flight Support Group (70.0%); Analyst target reached - limited upside remaining.
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 $362.09, but acceptable to hold if already in. Reasons: Concentration risk — Product: Flight Support Group (70.0%); Analyst target reached - limited upside remaining. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 6.1/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 52d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-07-06Recent Developments — Heico Corporation
Latest news
- NEWS Here's What Key Metrics Tell Us About Heico (HEI) Q2 Earnings - Yahoo Finance — Yahoo Finance positive
- NEWS HEICO (NYSE:HEI) Delivers Strong Q1 CY2026 Numbers, Stock Jumps 10.7% - StockStory — StockStory positive
- NEWS HEICO (NYSE:HEI) Delivers Strong Q1 CY2026 Numbers, Stock Jumps 10.7% - Yahoo Finance — Yahoo Finance positive
- NEWS HEICO (NYSE:HEI) Delivers Strong Q1 CY2026 Numbers, Stock Jumps 10.7% - The Globe and Mail — The Globe and Mail positive
- NEWS HEICO (NYSE:HEI) Delivers Strong Q1 CY2026 Numbers, Stock Jumps 10.7% - FinancialContent — FinancialContent positive
Generated 2026-07-06T04:40:26Z.
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.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
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 $362.09, but acceptable to hold if already in. Reasons: Concentration risk — Product: Flight Support Group (70.0%); Analyst target reached - limited upside remaining. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Target $359.26 (-0.8%), stop $343.13 (−5.5%), A.R:R -0.3:1. Score 6.1/10, moderate confidence.
Take-profit target: $359.26 (-0.8% upside). Target $359.26 (-0.8%), stop $343.13 (−5.5%), A.R:R -0.3:1. Stop-loss: $343.13.
Concentration risk — Product: Flight Support Group (70.0%); Analyst target reached - limited upside remaining; Near 52-week high (1.2% away).
Heico Corporation trades at a P/E of 64.5 (forward 52.6). TrendMatrix value score: 2.7/10. Verdict: Hold.
28 analysts cover HEI with a consensus score of 3.9/5. Average price target: $386.
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.