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Here's Why You Should Add HEI Stock to Your Portfolio Right Now

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Key Takeaways

  • HEI is highlighted as a strong pick due to aerospace strength, liquidity and low debt.
  • HEI has delivered an average earnings surprise of 13.35% across the last four quarters.
  • HEI benefits from rising air travel demand and maintains a strong foothold in U.S. defense.

HEICO’s (HEI - Free Report) robust presence in the aerospace market, solid liquidity and low debt are strong positives. Given its growth prospects, HEI makes for a solid investment option in the Aerospace sector.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.

Growth Projections & Surprise History of HEI

The Zacks Consensus Estimate for fiscal 2025 earnings per share is pegged at $4.77, which indicates year-over-year growth of 30%.

The consensus estimate for fiscal 2025 sales is $4.43 billion, which indicates year-over-year growth of 14.8%.

HEI’s long-term (three-to-five years) earnings growth rate is pegged at 18.9%.

It delivered an average earnings surprise of 13.35% in the last four quarters.

HEI Stock’s Debt Position

Currently, the company’s total debt-to-capital is 36.8%, better than the industry’s average of 49.4%.

HEI’s times interest earned (TIE) ratio at the end of the fiscal third quarter of 2025 was 7.27. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.

HEI’s Liquidity

HEI’s current ratio at the end of the fiscal third quarter of 2025 was 3.35. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.

Heico’s Expanding Commercial and Defense Momentum

Heico is benefiting from rising global air travel, which is driving higher demand for its aftermarket replacement parts and repair and overhaul services. This growth has supported strong results in the Flight Support Group, with higher sales and improved margins reflecting steady momentum in the aerospace aftermarket. With industry projections pointing to continued increases in air passenger volumes, Heico remains well-positioned to capture growing maintenance and component demand across commercial aviation.

The company also maintains a strong foothold in the U.S. defense sector, supplying critical aircraft parts, electrical interconnect products and support services to the Department of Defense and allied partners. Its Electronics Technologies Group adds further exposure to defense satellite and spacecraft programs, aligning well with rising U.S. defense spending. Supported by solid liquidity and a disciplined acquisition strategy that expands its product portfolio and customer base, Heico is poised for sustained long-term growth across both commercial and defense markets.

HEI Stock’s Price Performance

Shares of HEI have gained 32.6% in the year-to-date period compared with the industry’s 31.7% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Other top-ranked stocks from the same industry are Astronics (ATRO - Free Report) , Curtiss-Wright (CW - Free Report) and Woodward (WWD - Free Report) . Astronics sports a Zacks Rank #1 (Strong Buy) at present, while Curtiss-Wright and Woodward carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Astronics delivered an average earnings surprise of 59.10% in the last four quarters. The Zacks Consensus Estimate for ATRO’s 2025 sales is pinned at $856.9 million, which indicates year-over-year growth of 7.7%.

Curtiss-Wright delivered an average earnings surprise of 7.75% in the last four quarters. The consensus estimate for CW’s 2025 sales is pinned at $3.44 billion, which indicates year-over-year growth of 10.2%.

Woodward delivered an average earnings surprise of 14.66% in the last four quarters. The Zacks Consensus Estimate for WWD’s 2025 sales is pinned at $3.96 billion, which indicates year-over-year growth of 11.1%.

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