Reasons to Add HEICO Stock to Your Investment Portfolio Now

HEICO Corporation HEI benefits from its aviation aftermarket services and precise acquisition strategy, which has played an essential part in the company's overall growth. Given its strong growth and debt management, 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.Growth Forecast & Surprise History of HEICOThe Zacks Consensus Estimate for HEI’s fiscal 2025 earnings per share (EPS) has increased 1.4% to $4.48 per share over the past 30 days.The Zacks Consensus Estimate for its fiscal 2025 revenues is pegged at $4.34 billion, which implies a rise of 12.5% from the fiscal 2024 reported sales figure.The company’s long-term (three to five years) earnings growth rate is 17.4%. HEI surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 11.87%.HEICO’s ROICHEICO’s return on invested capital (ROIC) has outperformed the industry average in the trailing 12 months. Currently, HEI’s ROIC is 9.95% compared with the industry average of 4.43%. The ROIC evaluates a company's ability to earn returns on its investments.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 15.88% compared to its industry’s average of 11.08%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.HEICO’s Liquidity PositionHEI’s current ratio at the end of the second quarter of fiscal 2025 was 3.43, higher than the industry’s average of 1.74. 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.Overview of HEICO’s Debt ProfileCurrently, HEICO’s total debt to capital is 36.08%, much better than the industry’s average of 52.25%.HEI’s times interest earned ratio at the end of the second quarter of fiscal 2025 was 6.6. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.HEICO Expands Through Key BuyoutsIn April 2025, Heico bought Rosen Aviation's entire ownership stake. Rosen designs and manufactures in-flight entertainment (IFE) products, principally in-cabin displays and control panels. In February 2025, the company announced that its Flight Support Group had purchased a 90% share in Millennium International, LLC, a supplier of business jet avionics repair solutions that specializes in mission-critical repairs and maintenance for both next-generation and legacy avionics systems.These acquisitions strengthen HEICO's position in high-value cockpit avionics, increasing its market footprint, product offerings and aviation aftermarket services.HEICO Stock Outperforms IndustryIn the past six months, HEI shares have rallied 13.8% against the industry’s decline of 4.9%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Leonardo DRS, Inc. DRS, 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.DRS’ long-term earnings growth rate is 14.6%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.08, which suggests a year-over-year rise of 16.1%.CW’s long-term earnings growth rate is 12%. The Zacks Consensus Estimate for 2025 EPS is pegged at $12.61, which implies an improvement of 15.7%.Woodward’s long-term earnings growth rate is 13%. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $6.22, which indicates year-over-year growth of 1.8%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 Leonardo DRS, Inc. (DRS): 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