Aerospace player Heico has been trying to get past a resistance level near 284 and score a new all-time high since November. Heico is Tuesday's selection for IBD 50 Stocks To Watch.
Shares gapped up after first-quarter results on Feb. 27 but gave back those gains amid President Donald Trump's tariffs on April 2. The tariff relief rally on April 9 lifted the stock and has allowed it to form a base-on-base, cup-with-handle pattern with a buy point of 272.46.
Now, Heico stock is in a buy range that stretches up to 286.08. This is an early-stage base that can net higher gains than a later stage one.
First-quarter sales and earnings accelerated from the prior quarter. Sales grew 15% to $1.03 billion while earnings per share of $1 increased 39%.
Second-quarter earnings are due on May 27. Analysts polled by FactSet estimate $1.06 billion in sales which would be an 11% increase from the prior year, and earnings per share of $1.03 or a growth of 17%. For the full year, analysts see profits rising 24% with earnings of $4.44 per share.
Its strong earnings record has won Heico stock a high-end Earnings Per Share Rating of 95. Overall, the stock scores an ideal 99 for its Composite Rating. The stock has outperformed 99% of other stocks in the Investor's Business Daily database over the past 52 weeks. That is an improvement from three months back when the stock lagged 75% of other stocks in the database.
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Fund Ownership Strong For Heico Stock
Heico stock ranks fourth in the aerospace and defense group, according to IBD Stock Checkup. IBD MarketSurge data shows that the group holds 6th place among IBD's 197 industry groups.
Heico makes and sells aircraft engine parts and accessories and provides repair services. It also makes electronic components used in the medical and telecommunication industries, in addition to aerospace and defense.
Institutional ownership is strong with funds holding 60% of outstanding shares. In the IBD mutual fund index, the Federated Hermes Kaufmann Small Cap Fund (FKASX) holds shares of Heico stock.
The Accumulation/Distribution Rating of B+ also shows strong interest from funds in the last 13 weeks.
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