A strong balance sheet and cash flow generation capacity provide HEICO Corporation HEI financial flexibility in matters of incremental dividends and earnings accretive acquisitions.
Earnings estimates for HEICO have been revised upward in the past 60 days, which reflects analysts’ optimism on the stock. The Zacks Consensus Estimate for fiscal 2019 and fiscal 2020 earnings has moved up 1% and 1.6% during the said period, respectively.
Let’s focus on the factors that make the stock an appropriate pick at the moment.
Zacks Rank & Surprise History
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has an average four-quarter positive earnings surprise of 9.47%.
Price Performance & Long-Term Growth
In the past 12 months, HEICO’s shares have surged 80.8% compared with the industry’s rise of 13.9%.
The company’s long-term (3 to 5 years) earnings growth is pegged at 13.90%.
Debt/Capital & Current Ratio
HEICO is consistently striving to preserve balance-sheet strength. Currently, the company has a current ratio of 3.20. Its financial strength will enable the company to meet near-term debt obligation. Its long-term debt-to-capital ratio is 29.84%, which is lower than the Zacks S&P 500 composite’s level of 43.30%.
In recent years, HEICO has been adding new products at a rate of approximately 300-500 Parts Manufacturer Approvals (PMAs) per year. Such consecutive product innovations is expected to enable the company capture enhanced market share, going forward.
Other Key Picks
Some other top-ranked stocks from the same sector are Aerojet Rocketdyne Holdings, Inc. AJRD, Transdigm Group Inc. TDG and Teledyne Technologies Inc. TDY. All the three stocks sport a Zacks Rank of 1.
Aerojet Rocketdyne pulled off an average positive earnings surprise of 25.46% in the last four quarters. The company’s long-term earnings growth is pegged at 5.50%
Transdigm Group came up with an average positive earnings surprise of 10.71% in the last four quarters. The company’s long-term earnings growth is pegged at 12.60%
Teledyne Technologies pulled off an average positive earnings surprise of 9.26% in the last four quarters. The company’s long-term earnings growth is pegged at 13.40%
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Heico Corporation (HEI) : Free Stock Analysis Report
Aerojet Rocketdyne Holdings, Inc. (AJRD) : Free Stock Analysis Report
Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
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