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↓Deteriorating
- +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 $349.61, 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 $349.61, 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 6.5/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-07-26Recent 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 2026-07-26T06:17:12Z.
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
1 floor-breaker·1 ceiling hit
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $349.61, 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 $362.09 (+3.6%), stop $330.09 (−5.9%), A.R:R -0.1:1. Score 6.5/10, moderate confidence.
Take-profit target: $362.09 (-0.5% upside). Target $362.09 (+3.6%), stop $330.09 (−5.9%), A.R:R -0.1:1. Stop-loss: $330.09.
Concentration risk — Product: Flight Support Group (70.0%); Analyst target reached - limited upside remaining; Expensive valuation.
Heico Corporation trades at a P/E of 62.7 (forward 50.5). TrendMatrix value score: 2.8/10. Verdict: Hold.
28 analysts cover HEI with a consensus score of 3.9/5. Average price target: $387.
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.