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Are Aerospace Stocks Lagging Heico (HEI) This Year?

The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Heico Corporation (HEI) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.

Heico Corporation is a member of the Aerospace sector. This group includes 45 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Heico Corporation is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for HEI's full-year earnings has moved 2.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

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Based on the latest available data, HEI has gained about 24.4% so far this year. Meanwhile, the Aerospace sector has returned an average of -2.2% on a year-to-date basis. This means that Heico Corporation is performing better than its sector in terms of year-to-date returns.

Another Aerospace stock, which has outperformed the sector so far this year, is Leidos (LDOS). The stock has returned 33.8% year-to-date.

Over the past three months, Leidos' consensus EPS estimate for the current year has increased 10.8%. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Heico Corporation belongs to the Aerospace - Defense Equipment industry, a group that includes 21 individual companies and currently sits at #57 in the Zacks Industry Rank. This group has gained an average of 13.6% so far this year, so HEI is performing better in this area.

In contrast, Leidos falls under the Aerospace - Defense industry. Currently, this industry has 23 stocks and is ranked #141. Since the beginning of the year, the industry has moved -7%.

Investors interested in the Aerospace sector may want to keep a close eye on Heico Corporation and Leidos as they attempt to continue their solid performance.

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Heico Corporation (HEI) : Free Stock Analysis Report

Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report

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Zacks Investment Research