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Heico (HEI) Stock Sinks As Market Gains: What You Should Know

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Heico (HEI - Free Report) closed at $139.48 in the latest trading session, marking a -0.11% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.38%.

Coming into today, shares of the defense and aerospace contractor had gained 1.84% in the past month. In that same time, the Aerospace sector lost 1.18%, while the S&P 500 lost 3.57%.

Wall Street will be looking for positivity from HEI as it approaches its next earnings report date. The company is expected to report EPS of $0.53, up 8.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $513.73 million, up 10.28% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.24 per share and revenue of $2.01 billion, which would represent changes of +23.76% and +13.29%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for HEI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.07% higher. HEI is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note HEI's current valuation metrics, including its Forward P/E ratio of 62.29. This represents a premium compared to its industry's average Forward P/E of 22.48.

It is also worth noting that HEI currently has a PEG ratio of 4.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.18 at yesterday's closing price.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HEI in the coming trading sessions, be sure to utilize Zacks.com.


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