Heico (HEI) closed at $138.11 in the latest trading session, marking a +0.69% move from the prior day. This move traded in line with S&P 500. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.58%.
Heading into today, shares of the defense and aerospace contractor had gained 5.98% over the past month, outpacing the Aerospace sector's gain of 0.84% and the S&P 500's gain of 1.36% in that time.
Wall Street will be looking for positivity from HEI as it approaches its next earnings report date. On that day, HEI is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 8.16%. Meanwhile, our latest consensus estimate is calling for revenue of $513.73 million, up 10.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.24 per share and revenue of $2.01 billion. These totals would mark changes of +23.76% and +13.29%, respectively, from last year.
Any recent changes to analyst estimates for HEI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.07% higher. HEI is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, HEI is holding a Forward P/E ratio of 61.19. This valuation marks a premium compared to its industry's average Forward P/E of 21.17.
It is also worth noting that HEI currently has a PEG ratio of 4.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HEI's industry had an average PEG ratio of 2.34 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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