HEICO Corporation Named Among Top Aerospace and Defense Stocks by Hedge Funds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2026
0mins
Source: Yahoo Finance
- Analyst Price Target Increase: Citigroup analyst John Godyn raised HEICO's price target from $323 to $403 while maintaining a Buy rating, reflecting strong confidence in the company's growth potential, particularly after its second-quarter earnings beat expectations.
- UBS Target Price Adjustment: UBS lifted HEICO's price target from $371 to $390, maintaining a Neutral rating, but highlighted robust demand in the commercial aerospace and defense markets, indicating cautious optimism about the company's future performance.
- Strong Financial Performance: HEICO reported a record net income of $233.8 million in Q2, a 49% year-over-year increase, with earnings per diluted share at $1.66 and net sales growing 25% to $1,375.7 million, showcasing the company's strong competitive position in the market.
- Positive Market Outlook: As of June 5, HEICO's stock is rated a Moderate Buy with an average price upside potential of 18%, reflecting investor confidence in its future growth despite challenges from high energy prices and geopolitical risks.
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Analyst Views on HEI
Wall Street analysts forecast HEI stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 337.330
Low
303.09
Averages
365.68
High
400.00
Current: 337.330
Low
303.09
Averages
365.68
High
400.00
About HEI
HEICO Corporation is a manufacturer of jet engine and aircraft component replacement parts. Its segments include the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). The FSG segment consists of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. (HFSC) and their subsidiaries. The FSG uses proprietary technology to design and manufacture jet engines and aircraft component replacement parts. FSG repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for domestic and foreign commercial air carriers and aircraft repair companies, as well as military and business aircraft operators. The ETG segment consists of HEICO Electronic Technologies Corp. and its subsidiaries. ETG designs, manufactures and sells various types of electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Overview of This Week's Dividend Activities
- Dividend Increases: HEICO announced an increase in its dividend from $0.12 to $0.13 per share, representing an 8.3% rise, indicating ongoing profitability and boosting investor confidence.
- New Dividend Declarations: Mastercard (MA) declared a dividend of $0.87 per share, HP at $0.30, and Dell (DELL) at $0.63, reflecting these companies' commitment to stable cash flow and shareholder returns.
- Upcoming Dividends: Broadcom (AVGO) and FedEx (FDX) have ex-dividend dates set for June 22, with payout dates on June 30 and July 7 respectively, highlighting continued market interest and investor anticipation for these firms.
- ETF Investment Opportunities: Investors can explore various dividend-focused ETFs such as VIG and SCHD, which provide diversified options for those seeking stable income, thereby broadening the revenue sources of their investment portfolios.
See More
Abbott Declares 410th Consecutive Dividend Payment
- Abbott's Dividend Milestone: Abbott's board declared a quarterly cash dividend of 63 cents per share, marking the 410th consecutive dividend since 1924, showcasing the company's strong financial stability and commitment to shareholder returns.
- Consistent Dividend Growth: Abbott has increased its dividend payout for 54 consecutive years, making it a member of the S&P 500 Dividend Aristocrats Index, which underscores its long-term strategy in shareholder returns and market trust.
- HEICO's Dividend Increase: HEICO announced a semiannual cash dividend of $0.13 per share, an 8% increase from the previous $0.12, reflecting the company's strong performance in profitability and cash flow management.
- Graco's Quarterly Dividend: Graco's board declared a regular quarterly dividend of 29.5 cents per share, payable on August 5, 2026, further solidifying its stability and attractiveness in the market.
See More
HEICO Declares $0.13 Annual Dividend, 8.3% Increase
- Dividend Increase: HEICO announces an annual dividend of $0.13 per share, reflecting an 8.3% increase from the previous $0.12, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns, which is likely to bolster investor confidence.
- Yield Metrics: The forward yield stands at 0.04%, which, while relatively low, may attract income-seeking investors due to the company's consistent dividend policy, thereby reinforcing its market position.
- Dividend Schedule: The dividend is payable on July 15, with a record date of July 1 and an ex-dividend date also on July 1, ensuring shareholders receive timely returns and enhancing trust between the company and its investors.
- Future Outlook: HEICO anticipates GAAP ETG margins between 22%-24% and frames a 24%-26% margin range for FSG, indicating that strong demand may lead to sustained profit growth, further enhancing shareholder value.
See More
Investment Comparison: HEICO vs Textron
- HEICO Financial Performance: In FY 2025, HEICO's revenue reached nearly $4.5 billion, reflecting a 16.3% increase year-over-year, with net income around $690.4 million and a net margin of 15.4%, indicating strong growth potential in the aviation and defense markets.
- Textron Business Overview: Textron generated approximately $14.8 billion in revenue for FY 2025, an 8.0% increase from the previous year, with net income close to $921.0 million and a net margin of 6.2%, demonstrating steady demand across its aviation and industrial segments.
- Risk Analysis: HEICO's international operations accounted for 38% of its FY 2025 revenue, exposing it to currency fluctuation risks, while Textron's reliance on U.S. government contracts, which made up 27% of its revenue, poses potential budget cut risks.
- Valuation Comparison: HEICO's forward P/E ratio stands at 54.4x, indicating a high valuation, whereas Textron's forward P/E is only 14.3x, reflecting differing investor expectations regarding future growth.
See More
Investment Comparison: HEICO vs Textron
- HEICO Financial Performance: In FY 2025, HEICO reported nearly $4.5 billion in revenue, a 16.3% increase year-over-year, with a net income of approximately $690.4 million and a net margin of 15.4%, indicating strong demand and profitability in the aviation and defense markets.
- Textron Business Overview: Textron generated nearly $14.8 billion in revenue in FY 2025, reflecting an 8.0% growth compared to the previous year, with a net income of about $921.0 million and a net margin of 6.2%, showcasing stable market performance across its diversified business segments.
- Risk Factors Analysis: HEICO's international operations accounted for 38% of its FY 2025 revenue, exposing it to currency fluctuation risks, while Textron's reliance on U.S. government contracts, which constituted 27% of its revenue, presents procurement-related risks for both companies amid changing policies and market demands.
- Valuation Comparison: HEICO trades at a P/E ratio of 54, reflecting its premium market positioning, whereas Textron's P/E ratio stands at 14, indicating a relatively undervalued market position, prompting investors to weigh the growth potential against current valuations.
See More
HEICO Corporation Named Among Top Aerospace and Defense Stocks by Hedge Funds
- Analyst Price Target Increase: Citigroup analyst John Godyn raised HEICO's price target from $323 to $403 while maintaining a Buy rating, reflecting strong confidence in the company's growth potential, particularly after its second-quarter earnings beat expectations.
- UBS Target Price Adjustment: UBS lifted HEICO's price target from $371 to $390, maintaining a Neutral rating, but highlighted robust demand in the commercial aerospace and defense markets, indicating cautious optimism about the company's future performance.
- Strong Financial Performance: HEICO reported a record net income of $233.8 million in Q2, a 49% year-over-year increase, with earnings per diluted share at $1.66 and net sales growing 25% to $1,375.7 million, showcasing the company's strong competitive position in the market.
- Positive Market Outlook: As of June 5, HEICO's stock is rated a Moderate Buy with an average price upside potential of 18%, reflecting investor confidence in its future growth despite challenges from high energy prices and geopolitical risks.
See More
Overview of This Week's Dividend Activities
- Dividend Increases: HEICO announced an increase in its dividend from $0.12 to $0.13 per share, representing an 8.3% rise, indicating ongoing profitability and boosting investor confidence.
- New Dividend Declarations: Mastercard (MA) declared a dividend of $0.87 per share, HP at $0.30, and Dell (DELL) at $0.63, reflecting these companies' commitment to stable cash flow and shareholder returns.
- Upcoming Dividends: Broadcom (AVGO) and FedEx (FDX) have ex-dividend dates set for June 22, with payout dates on June 30 and July 7 respectively, highlighting continued market interest and investor anticipation for these firms.
- ETF Investment Opportunities: Investors can explore various dividend-focused ETFs such as VIG and SCHD, which provide diversified options for those seeking stable income, thereby broadening the revenue sources of their investment portfolios.
See More
Abbott Declares 410th Consecutive Dividend Payment
- Abbott's Dividend Milestone: Abbott's board declared a quarterly cash dividend of 63 cents per share, marking the 410th consecutive dividend since 1924, showcasing the company's strong financial stability and commitment to shareholder returns.
- Consistent Dividend Growth: Abbott has increased its dividend payout for 54 consecutive years, making it a member of the S&P 500 Dividend Aristocrats Index, which underscores its long-term strategy in shareholder returns and market trust.
- HEICO's Dividend Increase: HEICO announced a semiannual cash dividend of $0.13 per share, an 8% increase from the previous $0.12, reflecting the company's strong performance in profitability and cash flow management.
- Graco's Quarterly Dividend: Graco's board declared a regular quarterly dividend of 29.5 cents per share, payable on August 5, 2026, further solidifying its stability and attractiveness in the market.
See More
HEICO Declares $0.13 Annual Dividend, 8.3% Increase
- Dividend Increase: HEICO announces an annual dividend of $0.13 per share, reflecting an 8.3% increase from the previous $0.12, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns, which is likely to bolster investor confidence.
- Yield Metrics: The forward yield stands at 0.04%, which, while relatively low, may attract income-seeking investors due to the company's consistent dividend policy, thereby reinforcing its market position.
- Dividend Schedule: The dividend is payable on July 15, with a record date of July 1 and an ex-dividend date also on July 1, ensuring shareholders receive timely returns and enhancing trust between the company and its investors.
- Future Outlook: HEICO anticipates GAAP ETG margins between 22%-24% and frames a 24%-26% margin range for FSG, indicating that strong demand may lead to sustained profit growth, further enhancing shareholder value.
See More
Investment Comparison: HEICO vs Textron
- HEICO Financial Performance: In FY 2025, HEICO's revenue reached nearly $4.5 billion, reflecting a 16.3% increase year-over-year, with net income around $690.4 million and a net margin of 15.4%, indicating strong growth potential in the aviation and defense markets.
- Textron Business Overview: Textron generated approximately $14.8 billion in revenue for FY 2025, an 8.0% increase from the previous year, with net income close to $921.0 million and a net margin of 6.2%, demonstrating steady demand across its aviation and industrial segments.
- Risk Analysis: HEICO's international operations accounted for 38% of its FY 2025 revenue, exposing it to currency fluctuation risks, while Textron's reliance on U.S. government contracts, which made up 27% of its revenue, poses potential budget cut risks.
- Valuation Comparison: HEICO's forward P/E ratio stands at 54.4x, indicating a high valuation, whereas Textron's forward P/E is only 14.3x, reflecting differing investor expectations regarding future growth.
See More
Investment Comparison: HEICO vs Textron
- HEICO Financial Performance: In FY 2025, HEICO reported nearly $4.5 billion in revenue, a 16.3% increase year-over-year, with a net income of approximately $690.4 million and a net margin of 15.4%, indicating strong demand and profitability in the aviation and defense markets.
- Textron Business Overview: Textron generated nearly $14.8 billion in revenue in FY 2025, reflecting an 8.0% growth compared to the previous year, with a net income of about $921.0 million and a net margin of 6.2%, showcasing stable market performance across its diversified business segments.
- Risk Factors Analysis: HEICO's international operations accounted for 38% of its FY 2025 revenue, exposing it to currency fluctuation risks, while Textron's reliance on U.S. government contracts, which constituted 27% of its revenue, presents procurement-related risks for both companies amid changing policies and market demands.
- Valuation Comparison: HEICO trades at a P/E ratio of 54, reflecting its premium market positioning, whereas Textron's P/E ratio stands at 14, indicating a relatively undervalued market position, prompting investors to weigh the growth potential against current valuations.
See More
HEICO Corporation Named Among Top Aerospace and Defense Stocks by Hedge Funds
- Analyst Price Target Increase: Citigroup analyst John Godyn raised HEICO's price target from $323 to $403 while maintaining a Buy rating, reflecting strong confidence in the company's growth potential, particularly after its second-quarter earnings beat expectations.
- UBS Target Price Adjustment: UBS lifted HEICO's price target from $371 to $390, maintaining a Neutral rating, but highlighted robust demand in the commercial aerospace and defense markets, indicating cautious optimism about the company's future performance.
- Strong Financial Performance: HEICO reported a record net income of $233.8 million in Q2, a 49% year-over-year increase, with earnings per diluted share at $1.66 and net sales growing 25% to $1,375.7 million, showcasing the company's strong competitive position in the market.
- Positive Market Outlook: As of June 5, HEICO's stock is rated a Moderate Buy with an average price upside potential of 18%, reflecting investor confidence in its future growth despite challenges from high energy prices and geopolitical risks.
See More
