HEICO Corporation research snapshot
HEI AI stock analysis currently sees HEICO Corporation as a high-quality aerospace and defense compounder built around FAA-approved aftermarket parts, repair services, and mission-critical electronics. At the August 2, 2026 data cutoff, the latest available HEI close was $356.36 on July 31, with a verified market capitalization of about $49.80 billion. Fiscal Q2 2026 results were the strongest in the recent record, and the company followed with a $1.2 billion senior notes offering, but the stock already prices in sustained growth, so this is a scenario-based assessment rather than a precise AI stock prediction.
Current price
$356.36
Market cap
$49.80 billion verified market cap
AI score
74 / 100
Rating
High-quality aerospace compounder with record results, acquisition momentum, rising leverage, and a demanding valuation
Trend status
Constructive, above the 50-day and 200-day moving averages but below the 52-week high
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | HEICO sells FAA-approved replacement parts, repair and distribution services, and mission-critical electronic, defense, space, medical, and industrial products where reliability and certification matter. | High |
| Moat | Certification, engineering know-how, niche product breadth, customer qualification, decentralized operating expertise, and a long acquisition record create meaningful barriers, though they do not eliminate program and cycle risk. | High |
| Management | Co-CEOs Eric and Victor Mendelson continue the company's decentralized model and acquisition-led capital allocation. The central test is preserving return discipline as debt rises following the $1.2 billion notes offering. | Medium-high |
| Financial trend | TTM revenue reached $4.911 billion and net income attributable to HEICO reached $789.63 million. Fiscal Q2 2026 net sales rose 25.3% and net income attributable to HEICO rose 49.1% year over year. | High |
| Valuation | At $356.36, HEI traded near 63.6x TTM EPS, 53.8x free cash flow per share, and roughly 10.1x sales. Strong quality is already reflected in the price. | High |
| Technical trend | The latest available close was above the 50-day average near $339.47 and 200-day average near $317.93. RSI near 57.89 was positive without being extreme. | Medium |
| Risk level | The major risks are premium-multiple compression, acquired-business integration, higher debt from the notes offering, aerospace and defense demand disruption, supplier constraints, and margin pressure from mix or execution. | Medium-high |
| AI confidence | Public financial and operating data are rich enough for high descriptive confidence, but technical timing and return forecasts remain conditional. | High data confidence |
| Investment certainty | Medium certainty. The operating model has a durable record, while the current valuation leaves less room for execution mistakes. | Medium |
HEI AI stock forecast
The HEI AI stock forecast uses scenarios rather than a fixed prediction. A three-year mechanical model using the $356.36 reference price, $5.60 TTM EPS, and different growth and valuation assumptions produces roughly $272 in a bear case, $444 in a base case, and $552 in a bullish case. Those outputs are not price targets and exclude the possibility that acquisitions, margins, earnings quality, or market multiples change materially.
$530 to $575
More likely if HEICO sustains near 18% earnings growth, commercial aftermarket and defense demand remain strong, acquired businesses like CalRamic and Cook Defence Systems integrate well, cash conversion improves, and investors continue to pay a high-50s to 60x earnings multiple.
$420 to $465
More likely if EPS compounds near the low teens, organic demand stays healthy across Flight Support and Electronic Technologies, acquisition leverage remains manageable, and the multiple settles near the mid-50s.
$255 to $290
More likely if aerospace or defense demand slows, acquisition integration dilutes margins, debt costs rise after the notes offering, free cash flow disappoints, or the market resets HEI closer to a 42x earnings multiple.
HEI AI technical analysis
HEI AI technical analysis is constructive but requires risk discipline as of the August 2, 2026 data cutoff. StockAnalysis reported a latest available July 31 close of $356.36, a 52-week range of $256.11 to $369.48, a 50-day moving average of $339.47, a 200-day moving average of $317.93, RSI of 57.89, and 20-day average volume of 428,602 shares.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $356.36 | Latest available StockAnalysis close, dated July 31, 2026. |
| Immediate support | $352 to $356 | This is the nearest price area around the latest close and needs to hold for short-term stability. |
| Moving-average support | $339.47 | The 50-day moving average is the first trend support reference after a pullback. |
| Major support | $317.93 | The 200-day moving average is the larger trend test. |
| Near resistance | $359 to $362 | This area brackets the latest reported day range high and is the first confirmation zone for renewed upside. |
| Major resistance | $369.48 | The reported 52-week high is the next major breakout reference. |
| Momentum | RSI 57.89 | Momentum was positive but not overbought at the latest source update. |
| Volume | 428,602 shares, 20-day average | A move through resistance carries more weight when volume exceeds the recent average. |
| Volatility | Beta 1.03 | HEI has recently shown market-like sensitivity, but earnings and valuation repricing can cause larger single-stock moves. |
| Invalidation | Sustained close below $339, then $318 | A break below the 50-day average weakens the near-term structure; a break below the 200-day average challenges the larger trend. |
HEI AI trading strategy
The HEI AI trading strategy below is a rules-based research framework, not personal advice. It combines technical confirmation with quarterly organic sales, segment margins, acquisition spending, leverage, cash conversion, commercial aviation activity, defense demand, and valuation discipline.
Watch for HEI to clear and hold above $359 to $362 with volume above the 20-day average, while quarterly sales, segment margins, and cash flow remain consistent with the growth thesis.
A failed breakout followed by a sustained close below $339 should reduce trend confidence, particularly if it follows weaker margins, slower organic growth, or debt and acquisition-related pressure.
If HEI pulls back toward the $339 to $318 moving-average area, compare the lower price with forward earnings, free cash flow, net debt, organic growth, acquisition integration, and peer aerospace valuations.
Do not treat a pullback as automatically attractive if demand slows, margin gains reverse, debt rises faster than earnings, or the multiple remains disconnected from conservative earnings assumptions.
Track fiscal Q3 results, Flight Support and Electronic Technologies organic growth, segment margins, acquisition announcements, debt and net-debt-to-EBITDA after the notes offering, operating cash flow, free cash flow, aircraft utilization, and defense or space demand.
Position size should reflect both execution risk and the fact that a premium multiple can decline even when HEICO remains a strong company.
Investment research summary
Customers pay HEICO to obtain certified replacement parts, repair services, distribution, and high-reliability electronic components where downtime, performance, certification, or mission failure can be costly. The company turns niche engineering and customer qualification into recurring aerospace and electronics demand.
HEICO benefits from FAA approvals, engineering knowledge, customer qualification, specialized product portfolios, repair capabilities, a decentralized operating model, and long-built relationships across commercial aviation, defense, space, medical, and industrial markets. Its moat is real but must be replenished through product execution and careful acquisitions.
The thesis can fail if commercial aviation or defense demand weakens, program mix damages margins, acquisitions are overpaid or poorly integrated, leverage rises faster than earnings after the July 2026 notes offering, suppliers constrain output, customers change sourcing, or a premium valuation falls despite healthy operations.
Eric and Victor Mendelson lead HEICO as Co-Chairmen and Co-CEOs. The management case rests on decades of decentralized operations, selective acquisitions, and focus on long-term value. The key question is whether that discipline remains intact as the company grows and additional debt funds new deals.
Commercial fleet utilization, aircraft maintenance demand, defense modernization, space and electronic-system complexity, and the need for reliable components support long-term demand. The industry remains exposed to airline cycles, government budgets, supply-chain capacity, and program-level concentration.
At $356.36, HEI implies continued high-quality growth. A margin of safety depends less on the headline quality of the franchise and more on entry price, organic growth persistence, cash conversion, acquisition returns, and whether investors keep paying a premium multiple.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| HEI quote reference | $356.36 close on July 31, 2026, with a $352.84 to $359.22 reported day range and a $256.11 to $369.48 52-week range | StockAnalysis HEI overview | August 2, 2026 |
| Market capitalization verification | $49.80 billion reported and $49.80 billion calculated from $356.36 x 139.74 million shares, a 0.00% deviation | Pineify financial_rigor.py and StockAnalysis HEI overview | August 2, 2026 |
| FY2025 revenue | $4.485 billion, cross-validated between Macrotrends and StockAnalysis | Macrotrends HEICO revenue history | August 2, 2026 |
| FY2025 net income | $690.39 million net income attributable to HEICO, cross-validated between Macrotrends, StockAnalysis, and the fiscal 2025 Form 10-K | HEICO fiscal 2025 Form 10-K and StockAnalysis HEI financials | August 2, 2026 |
| Fiscal Q2 2026 operating results | $1.376 billion net sales, $350.4 million operating income, $233.8 million net income attributable to HEICO, and $1.66 diluted EPS | HEICO fiscal Q2 2026 Form 10-Q | August 2, 2026 |
| Segment growth | Fiscal Q2 2026 Flight Support Group sales of $929.4 million and Electronic Technologies Group sales of $459.5 million, with strong reported organic growth in both groups | HEICO fiscal Q2 2026 Form 10-Q | August 2, 2026 |
| Cash and debt | $210.34 million cash and cash equivalents and about $2.59 billion total debt at April 30, 2026, cross-checked with the HEICO 10-Q and StockAnalysis | HEICO fiscal Q2 2026 Form 10-Q | August 2, 2026 |
| July 2026 notes offering | $1.2 billion of senior notes issued on July 16, 2026, consisting of $550 million 4.950% notes due 2031 and $650 million 5.400% notes due 2036, with proceeds to pay down credit facility borrowings | HEICO Form 8-K filed July 16, 2026 | August 2, 2026 |
| Cash flow | $997.11 million TTM operating cash flow, $925.97 million TTM free cash flow, and $6.63 TTM free cash flow per share | StockAnalysis HEI statistics | August 2, 2026 |
| Valuation metrics | About 63.6x TTM PE, 10.4x price to book, 53.8x price to free cash flow, 1.86% free-cash-flow yield, and 0.07% dividend yield verified by financial_rigor.py | Pineify financial_rigor.py and StockAnalysis HEI statistics | August 2, 2026 |
| Technical snapshot | 50-day moving average $339.47, 200-day moving average $317.93, RSI 57.89, 20-day average volume 428,602 shares, and beta 1.03 | StockAnalysis HEI statistics | August 2, 2026 |
| Analyst consensus | 22 analysts, average rating Buy, with a $386.53 average price target, a low of $290, and a high of $472 | StockAnalysis HEI forecast | August 2, 2026 |
This HEI AI stock analysis is an informational research tool, not investment advice, a recommendation, or a guarantee of future returns. Forecast scenarios are based on available public data as of August 2, 2026 and can be wrong if earnings, aviation demand, defense budgets, acquisition execution, debt costs, valuation, or investor sentiment change.
Design trading strategies visually with 10+ indicators. Set entry/exit conditions and risk management, then generate Pine Script code with no coding required.
Filter and discover stocks based on market cap, dividend yield, P/E ratio, sector, and more. Screen thousands of stocks with real-time data.
Smart AI-driven stock selection with fundamental screening, analyst estimates, and key metrics. Filter by P/E, market cap, dividends, and more.
