Trade-Ideas LLC identified

Heico

(

HEI

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Heico as such a stock due to the following factors:

  • HEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • HEI has traded 3,438 shares today.
  • HEI is trading at a new lifetime high.

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More details on HEI:

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The stock currently has a dividend yield of 0.2%. HEI has a PE ratio of 33. Currently there are 3 analysts that rate Heico a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Heico has been 159,000 shares per day over the past 30 days. Heico has a market cap of $4.4 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.69 and a short float of 11% with 13.52 days to cover. Shares are up 19.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Heico as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 20.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
  • HEICO CORP has improved earnings per share by 16.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HEICO CORP increased its bottom line by earning $1.97 versus $1.80 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $1.97).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 16.8% when compared to the same quarter one year prior, going from $33.11 million to $38.66 million.
  • 42.58% is the gross profit margin for HEICO CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.02% is above that of the industry average.

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