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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 13.82% 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 2026 earnings per share is pegged at $5.69, which indicates year-over-year growth of 16.1%.

The consensus estimate for fiscal 2026 sales is $5.14 billion, which indicates year-over-year growth of 14.5%.

HEI’s long-term (three-to-five years) earnings growth rate is pegged at 14.7%.

It delivered an average earnings surprise of 13.82% in the last four quarters.

HEI Stock’s Debt Position

Currently, the company’s total debt-to-capital is 35.38%, better than the industry’s average of 41.52%.

HEI’s times interest earned (TIE) ratio at the end of the fiscal second quarter of 2026 was 9.05. 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 second quarter of 2026 was 2.92. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.

Heico’s Growing Commercial and Defense Momentum

Heico is benefiting from strong demand for its aftermarket replacement parts and repair and overhaul services, which support airlines and aircraft operators. Rising global air travel continues to drive maintenance needs, helping increase demand for Heico’s products and services. In the second quarter of fiscal 2026, the company’s Flight Support Group (FSG) reported record net sales of $929.4 million, up 21% year over year, supported by strong organic growth and acquisitions.

The company is also expanding its presence in defense and space markets through both its FSG and Electronics Technologies Group (ETG). Heico has been seeing rising defense-related orders and backlog, supported by growing demand as governments continue to replace and replenish defense inventories. The company supplies products for both traditional defense programs and newer technologies, including unmanned systems, which strengthens its growth opportunities.

HEI Stock’s Price Performance

Shares of HEI have gained 12.4% in the past month compared with the industry’s 5.2% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the same industry are Woodward (WWD - Free Report) , AAR (AIR - Free Report) and CurtissWright (CW - Free Report) . Each of these stocks carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Woodward delivered an average earnings surprise of 16.97% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $9.34 per share, which indicates year-over-year growth of 35.6%.

AAR delivered an average earnings surprise of 11.30% in the last four quarters. The consensus estimate for AIR’s fiscal 2026 earnings stands at $4.97 per share, which suggests year-over-year growth of 27.1%.

CurtissWright delivered an average earnings surprise of 3.81% in the last four quarters. The consensus estimate for CW’s 2026 earnings is pegged at $15.16 per share, which implies year-over-year growth of 14.6%.

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