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Should HEICO’s (HEI) Moat Justify Its Outperformance and Upgraded Earnings Outlook?

Simply Wall St · 2d ago
  • Earlier this week, HEICO Corporation was highlighted for its strong year-to-date performance versus the Aerospace sector and improving full-year earnings estimates, reflecting more optimistic analyst forecasts.
  • Analysts emphasized HEICO's entrenched position in FAA-approved replacement parts and its acquisition-led expansion, underscoring how regulatory barriers and switching costs support its aftermarket pricing power.
  • Next, we'll examine how HEICO's improved earnings outlook and competitive moat may influence its existing investment narrative and future expectations.

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HEICO Investment Narrative Recap

To own HEICO, you need to believe that demand for FAA‑approved replacement parts and niche aerospace components will remain resilient, and that its acquisition engine can keep adding value. The recent outperformance and upgraded earnings estimates support that thesis in the near term, but do not materially change the key short term catalyst, which is continued margin resilience, or the biggest risk, which is OEMs pushing back harder against PMA parts in the aftermarket.

The recent confirmation of strong year to date returns and positive earnings estimate revisions is most directly linked to HEICO’s acquisition led growth story, which has been driving higher revenue and margins across recent quarters. As the company continues to integrate smaller engineering focused businesses, investors are watching whether these deals can maintain earnings momentum without amplifying integration or regulatory risks.

Yet behind the strong momentum, a growing effort by OEMs to restrict PMA usage is a risk investors should be aware of...

Read the full narrative on HEICO (it's free!)

HEICO's narrative projects $5.4 billion revenue and $948.3 million earnings by 2028.

Uncover how HEICO's forecasts yield a $353.00 fair value, a 13% upside to its current price.

Exploring Other Perspectives

HEI Community Fair Values as at Dec 2025
HEI Community Fair Values as at Dec 2025

Three members of the Simply Wall St Community currently value HEICO between US$310 and US$353 per share, showing how far individual expectations can stretch. You should weigh that spread against the risk that OEM pressure on PMA parts could challenge HEICO’s aftermarket strength over time and consider how different scenarios might affect its future performance.

Explore 3 other fair value estimates on HEICO - why the stock might be worth as much as 13% more than the current price!

Build Your Own HEICO Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your HEICO research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
  • Our free HEICO research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HEICO's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.