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Heico Corporation (HEI) Moves 5.2% Higher: Will This Strength Last?

·2 min read

Heico Corporation (HEI) shares ended the last trading session 5.2% higher at $157.71. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14.4% gain over the past four weeks.

The latest uptick in the share price performance of Heico Corp can be attributed to the recently revealed acquisition news of Exxelia International from an affiliate of IK Partners, by Heico’s Electronic Technologies Group, for approximately $555 million worth of cash.

This company is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +16.1%. Revenues are expected to be $555.71 million, up 17.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Heico Corporation, the consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HEI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Heico Corporation belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, AeroVironment (AVAV), closed the last trading session 1.6% higher at $86.64. Over the past month, AVAV has returned 3.8%.

AeroVironment's consensus EPS estimate for the upcoming report has changed +1000% over the past month to $0.09. Compared to the company's year-ago EPS, this represents a change of +152.9%. AeroVironment currently boasts a Zacks Rank of #5 (Strong Sell).


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