Stock Price & Analysis

Buy HEI stock as it shows strong growth and bullish technical patterns following positive earnings. Recent dips may offer a buying opportunity.

Price Prediction for HEI Stock in 2025

HEI stock is predicted to reach $267.74 by mid-2025. This target is supported by strong earnings growth, with the stock recently surging 17.31% after better-than-expected Q1 results. The bullish MACD crossover and RSI of 61.18 suggest continued upward momentum.

The S1 support level for HEI Stock is $251.1 ,The R1 resistant level for HEI Stock is $267.82.

As of the end of day on 2025-03-17, the price of HEI Stock was $255.32.

The target price for HEI Stock according to analyst rating is 271.50, with the highest price target at 305.00 and the lowest at 214.00. Analysts have a Moderate Buy rating on HEI Stock overall.

The market cap of HEI is $35.6B.

Analysis and Insights

To determine if HEI is overvalued, we analyze its financial metrics, valuation ratios, and market sentiment.

Valuation Metrics:

• P/E Ratio: HEI's P/E ratio is 59.1, significantly higher than the industry average, indicating potential overvaluation.
• EV/EBITDA: The EV/EBITDA ratio is 30.08, which is elevated compared to industry peers.
• P/S Ratio: The P/S ratio is 8.4, suggesting a premium valuation.
• P/B Ratio: The P/B ratio is 1.2, indicating moderate valuation.

Financial Performance:

• ROE: HEI's ROE is 16.18%, reflecting efficient equity use.
• Net Margin: The net margin is 42.06%, showcasing strong profitability.
• Current Ratio: The current ratio is 3.17, indicating healthy liquidity.
• Debt/Equity: The debt-to-equity ratio is 60.3%, manageable but notable.

Market Sentiment:

• Analyst Ratings: Analysts have mixed views, with some raising targets (e.g., Truist to $294) and others lowering (e.g., Deutsche Bank to $266). The average target is $272, suggesting a 6% upside.
• Recent Performance: HEI's stock has been volatile, with a 52-week high of $269 and current price around $256.

Conclusion:

HEI's high P/E and EV/EBITDA ratios suggest overvaluation. However, strong margins and ROE support its price. Analyst upgrades and positive earnings contribute to its strength, but high multiples may indicate overvaluation compared to peers.

HEICO Corporation is a manufacturer of jet engine and aircraft component replacement parts. The Company’s segments include Flight Support Group (FSG) and Electronic Technologies Group (ETG). FSG segment consists of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their subsidiaries. FSG uses technology to design and manufacture jet engine 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. 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, back-up power supplies and others.

Price Prediction for HEI Stock by 2030

Based on current trends and analysis, HEI stock is predicted to reach $350 by 2030. This forecast is supported by the company's strong growth in the aerospace and defense sectors, consistent earnings growth, and positive technical indicators. The stock's current price of $254.48, combined with its inclusion in the IBD Big Cap 20 and IBD 50 lists, suggests sustained upward momentum.

HEI has a total of 9600 employees.