Why HEICO Is Poised to Keep Flying

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jet engine replacement parts manufacturer HEICO (NYSE: HEI  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at HEICO and see what CAPS investors are saying about the stock right now.

HEICO facts

Headquarters (founded)

Hollywood, Fla. (1949)

Market Cap

$2.7 billion

Industry

Aerospace and defense

Trailing-12-Month Revenue

$922.6 million

Management

Chairman/CEO Laurans Mendelson

CFO Carlos Macau

Return on Equity (average, past 3 years)

14.5%

Cash/Debt

$16.9 million / $228.5 million

Dividend Yield

0.3%

Competitors

General Electric

Pratt & Whitney

Rolls Royce Holdings

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 292 members who have rated HEICO believe the stock will outperform the S&P 500 going forward.   

Just last month, one of those Fools, Manny2179, touched on the attractive tailwinds working in HEICO's favor: "With the production of the 737 Max, A320 NEO [aircrafts] on the horizon this company is going to rake in the profits ... big margins on parts and lots of quantity to be sold to both Boeing and Airbus. I wouldn't be surprised if this stock went 4X in a few years."

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, HEICO may not be your top choice.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three other companies that could take off when the global economy gains steam. Click here to read the full report!


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