Here's Why You Must Add HEICO Stock to Your Portfolio Right Now

HEICO Corporation HEI gains from its aircraft aftermarket services and quality acquisition strategy, which have played a critical role in the company's steady growth. Given its strong growth and rising liquidity, HEI makes for a solid investment option in the Zacks Aerospace Defense Equipment industry.Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment.HEICO’s Growth Projection & Surprise HistoryThe Zacks Consensus Estimate for HEI’s fiscal 2025 earnings per share (EPS) has increased 1.1% to $4.62 per share over the past 30 days.The Zacks Consensus Estimate for its fiscal 2025 revenues is pegged at $4.38 billion, which implies a rise of 13.5%.The company’s long-term (three to five years) earnings growth rate is 17.6%. HEI surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 13.35%.HEICO’s Return on EquityReturn on equity (ROE) indicates how efficiently a company has been utilizing its shareholders’ funds to generate returns. Currently, HEICO’s ROE is 16.29% compared to its industry’s average of 8.56%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.Overview of HEICO’s Debt ProfileCurrently, HEICO’s total debt to capital is 36.75%, better than the industry’s average of 49.24%.HEI’s times interest earned ratio at the end of the third quarter of fiscal 2025 was 7.3. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.HEICO’s Liquidity PositionHEI’s current ratio at the end of the third quarter of fiscal 2025 was 3.35, higher than the industry’s average of 1.80. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.HEICO Expands Through AcquisitionsIn July 2025, Heico completed the acquisition of Gables Engineering, a producer of advanced avionics controls. The buyout is expected to strengthen HEI’s presence in the aerospace OEM manufacturing and aftermarket services market.In April 2025, Heico bought Rosen Aviation's entire ownership stake. This should enhance Heico’s product offerings and expand its market reach, considering Rosen designs and manufactures in-flight entertainment products, principally in-cabin displays and control panels.Such valuable acquisitions are projected to expand and diversify Heico’s product portfolio and enhance its customer base, which should keep its revenue and cash flow growth in good shape.HEICO Stock Outperforms IndustryIn the past year, HEI shares have rallied 25.1% compared with the sector’s growth of 19.7%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Loar Holdings Inc. LOAR, Curtiss-Wright Corp. CW and Woodward, Inc. WWD, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.LOAR delivered an average earnings surprise of 29.64% in the past four quarters. The Zacks Consensus Estimate for 2025 EPS is pegged at 79 cents, which implies an improvement of 88.1%.CW’s long-term earnings growth rate is 12.7%. The Zacks Consensus Estimate for 2025 EPS stands at $12.91, which calls for an increase of 18.4%.Woodward’s long-term earnings growth rate is 13.9%. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $6.56, which indicates year-over-year growth of 7.4%.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Curtiss-Wright Corporation (CW): Free Stock Analysis Report Woodward, Inc. (WWD): Free Stock Analysis Report Heico Corporation (HEI): Free Stock Analysis Report Loar Holdings Inc. (LOAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks