For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Heico Corporation (HEI) ten years ago? It may not have been easy to hold on to HEI for all that time, but if you did, how much would your investment be worth today?
Heico Corporation's Business In-Depth
With that in mind, let's take a look at Heico Corporation's main business drivers.
Florida-based HEICO Corporation, incorporated in 1957, is one of the world’s leading manufacturers of Federal Aviation Administration (“FAA”)-approved jet engine and aircraft component replacement parts. It also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. The company’s products are found on large commercial aircraft, regional, business and military aircraft, as well as on a large variety of industrial turbines, targeting systems, missiles and electro-optical devices.
HEICO Corp. operates in two segments, the Flight Support group and the Electronic Technologies group.
The Flight Support Group consists of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp., and their collective subsidiaries. The group uses proprietary technology to design and manufacture jet engine and aircraft component replacement parts. In addition, it repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments. The segment also manufactures thermal insulation products, complex composite assemblies and other component parts, primarily for aerospace, defense, industrial and commercial applications. Net sales for this group were $2.64 billion in fiscal 2024, contributing 68.4% to the company’s total sales.
The Electronic Technologies Group consists of HEICO Electronic Technologies Corp. and its subsidiaries. It designs, manufactures and sells various types of electronic, microwave and electro-optical products. These products include infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, power conversion products, underwater locator beacons, electromagnetic interference and radio frequency interference shielding, high power capacitor charging power supplies, amplifiers, photo detectors, and radio frequency (RF) and microwave amplifiers. Net sales for this group were $1.26 billion in fiscal 2024, contributing 32.8% to the company’s total sales.
Total sales consisted of intersegment expenses of $0.45 billion.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Heico Corporation, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in June 2015 would be worth $10,213.38, or a gain of 921.34%, as of June 2, 2025, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 180.52% and the price of gold went up 165.25% over the same time frame.
Analysts are forecasting more upside for HEI too.
Heico ended the second quarter of fiscal 2025 on a solid note, with both its earnings and sales surpassing their respective Zacks Consensus Estimate. It witnesses increased orders for its aftermarket replacement parts and repair and overhaul parts services, backed by rising air travel. With its Flight Support Group unit being a supplier of military aircraft parts, solid U.S. defense funding should bolster order flows for its defense products. The company boasts a solid solvency position and has outperformed the industry in the past year. However, a supply shortage of aircraft components might adversely impact the company’s future performance. Heico is exposed to stringent governmental regulations, and failure to comply with them might lead to a material adverse impact on its business. The stock is expensive compared to its industry.
The stock has jumped 14.21% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2025; the consensus estimate has moved up as well.
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Heico Corporation (HEI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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