Heico rose to an all-time high on Jan. 14. Then it saw its gains fade over the past month amid the market contraction. However, its stock has risen six of the past seven trading sessions. That includes a 1.6% hike for Heico stock Monday to 138.11 on rising profits and sales.
Heico says customers for its electronics and optical systems include most of the world's airlines. Also satellite makers, defense equipment producers, medical device makers and others. Heico's Sierra Microwave Technology subsidiary made flight-critical components for the James Webb Space Telescope, which is now positioned about 1 million miles from Earth.
Heico Stock Boasts Top-Notch Earnings Rating
Among Hollywood, Fla.-based Heico's key ratings, it has a strong 88 EPS Rating of a best-possible 99. That's based on aggressive recent quarters profit growth and prior years' growth. It's outstanding given that sales and profits for the midcap slid for five quarters in the early and mid parts of the pandemic before it rebounded.
Additionally, Heico stock has an 85 Composite Rating, which is good but not yet great. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
Another strong suit for Heico stock is its C Accumulation/Distribution Rating, on an A+ to E scale. Many top-notch companies have low A/C ratings now after institutional investors sold into the recent market correction. The C rating shows that about as many institutional investors are buying Heico stock as selling.
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In terms of fundamentals, Heico reported 38% earnings growth in its most recent quarter, to 62 cents per share. Sales rose 20% to $509.4 million. The prior quarter its EPS climbed 40% on 22% higher sales year over year.
Heico stock earns the No. 5 rank among its peers in the Aerospace/Defense industry group. Lockheed Martin and Teledyne Technologies are also among the group's highest-rated stocks.
