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Here's Why You Should Add HEICO (HEI) Stock to Your Portfolio
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A strong balance sheet and cash flow generation capacity provide HEICO Corporation (HEI - Free Report) financial flexibility in matters of incremental dividends and earnings accretive acquisitions.
Earnings estimates for HEICO have been revised upward in the past 60 days, which reflects analysts’ optimism on the stock. The Zacks Consensus Estimate for fiscal 2019 and fiscal 2020 earnings has moved up 1% and 1.6% during the said period, respectively.
Let’s focus on the factors that make the stock an appropriate pick at the moment.
The company has an average four-quarter positive earnings surprise of 9.47%.
Price Performance & Long-Term Growth
In the past 12 months, HEICO’s shares have surged 80.8% compared with the industry’s rise of 13.9%.
The company’s long-term (3 to 5 years) earnings growth is pegged at 13.90%.
Debt/Capital & Current Ratio
HEICO is consistently striving to preserve balance-sheet strength. Currently, the company has a current ratio of 3.20. Its financial strength will enable the company to meet near-term debt obligation. Its long-term debt-to-capital ratio is 29.84%, which is lower than the Zacks S&P 500 composite’s level of 43.30%.
Product Innovation
In recent years, HEICO has been adding new products at a rate of approximately 300-500 Parts Manufacturer Approvals (PMAs) per year. Such consecutive product innovations is expected to enable the company capture enhanced market share, going forward.
Other Key Picks
Some other top-ranked stocks from the same sector are Aerojet Rocketdyne Holdings, Inc. , Transdigm Group Inc. (TDG - Free Report) and Teledyne Technologies Inc. (TDY - Free Report) . All the three stocks sport a Zacks Rank of 1.
Aerojet Rocketdyne pulled off an average positive earnings surprise of 25.46% in the last four quarters. The company’s long-term earnings growth is pegged at 5.50%
Transdigm Group came up with an average positive earnings surprise of 10.71% in the last four quarters. The company’s long-term earnings growth is pegged at 12.60%
Teledyne Technologies pulled off an average positive earnings surprise of 9.26% in the last four quarters. The company’s long-term earnings growth is pegged at 13.40%
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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Here's Why You Should Add HEICO (HEI) Stock to Your Portfolio
A strong balance sheet and cash flow generation capacity provide HEICO Corporation (HEI - Free Report) financial flexibility in matters of incremental dividends and earnings accretive acquisitions.
Earnings estimates for HEICO have been revised upward in the past 60 days, which reflects analysts’ optimism on the stock. The Zacks Consensus Estimate for fiscal 2019 and fiscal 2020 earnings has moved up 1% and 1.6% during the said period, respectively.
Let’s focus on the factors that make the stock an appropriate pick at the moment.
Zacks Rank & Surprise History
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has an average four-quarter positive earnings surprise of 9.47%.
Price Performance & Long-Term Growth
In the past 12 months, HEICO’s shares have surged 80.8% compared with the industry’s rise of 13.9%.
The company’s long-term (3 to 5 years) earnings growth is pegged at 13.90%.
Debt/Capital & Current Ratio
HEICO is consistently striving to preserve balance-sheet strength. Currently, the company has a current ratio of 3.20. Its financial strength will enable the company to meet near-term debt obligation. Its long-term debt-to-capital ratio is 29.84%, which is lower than the Zacks S&P 500 composite’s level of 43.30%.
Product Innovation
In recent years, HEICO has been adding new products at a rate of approximately 300-500 Parts Manufacturer Approvals (PMAs) per year. Such consecutive product innovations is expected to enable the company capture enhanced market share, going forward.
Other Key Picks
Some other top-ranked stocks from the same sector are Aerojet Rocketdyne Holdings, Inc. , Transdigm Group Inc. (TDG - Free Report) and Teledyne Technologies Inc. (TDY - Free Report) . All the three stocks sport a Zacks Rank of 1.
Aerojet Rocketdyne pulled off an average positive earnings surprise of 25.46% in the last four quarters. The company’s long-term earnings growth is pegged at 5.50%
Transdigm Group came up with an average positive earnings surprise of 10.71% in the last four quarters. The company’s long-term earnings growth is pegged at 12.60%
Teledyne Technologies pulled off an average positive earnings surprise of 9.26% in the last four quarters. The company’s long-term earnings growth is pegged at 13.40%
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>