Here's Why Heico Shares Soared Today
Key Points
Alongside other industry-leading lights, Heico's management believes the issues impacting the commercial aerospace industry will prove temporary.
The conflict in Iran is still unresolved, and jet fuel prices could remain higher for longer in 2026.
- 10 stocks we like better than Heico ›
Heico (NYSE: HEI) (NYSE: HEIA) shocked the market with its second-quarter earnings report, and investors wasted no time in sending the stock higher by 10.7% at 1 p.m. today.
Heico shocks the market
Wall Street analyst upgrades and downgrades are usually a good way to gauge sentiment over a stock. In this case, Jefferies lowered its price target (but maintained its buy rating) from $400 to $375 in anticipation of the earnings report.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The earnings report came in and blew away Wall Street expectations in both the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). Jefferies responded by hiking its price target to $410.
Skepticism ahead of the report was understandable, as a combination of soaring jet fuel prices, route closures in the Middle East, and airlines cutting capacity has led companies to lower estimates of flight departures. For example, GE Aerospace lowered its expectations for flight departures in 2026 to flat to low-single-digit growth from a previous estimate of mid-single-digit growth.
Lower flight departures are an issue for Heico's FSG because it provides Federal Aviation Administration (FAA) approved aftermarket replacement parts, and fewer flight departures usually mean less aftermarket demand.
However, Heico reported no weakness in its end markets, with FSG sales coming in at $929 million, above the pre-earnings consensus of $864 million, and ETG sales at $460 million, above the pre-earnings consensus of $396 million. All consensus figures courtesy of S&P Global Market Intelligence.
Image source: Getty Images.
Where next for Heico
Discussing the outlook for commercial aerospace on the earnings call, CEO Victor Mendelson took the view that "while short-term shocks like the current just war might create short-term disruption in the inexorable upward trend, the short-term disruptions are, by definition, always brief," and, "Fuel prices eventually settle back. spurring even more growth."
The latter view is supported by GE Aerospace's management, which believes above-average growth will follow a temporary slowdown, and by Delta Air Lines, which confirmed that end-demand remains strong even as it cuts capacity amid higher jet fuel costs.
It's hard not to think Heico will get hit if the conflict persists, but right now, its business is firing on all cylinders.
Should you buy stock in Heico right now?
Before you buy stock in Heico, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Heico wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,072!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,352!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 28, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Aerospace and Heico. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
Recommended Articles
