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Opinions David Driscoll
HEICO CORPHEIPARTIAL BUYOct 12, 2018
David DriscollOwned
$83.49
Stock price when the opinion was issued
$336.99
As of Jun 18, 2026. Market Open.
transportation equip & components
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WAIT
They make OEM for commercial airlines, and electronic components for airlines, the military and NASA. Half the business is doing okay while the other is cocooning. They hit a high a year ago, and has come down after a stock split. The smallcap manufacturers are under the gun in recent years from weakening demand and profitability will be tough looking ahead. He's waiting for a vaccine and an economic pickup before buying more smallcaps, including this.
David DriscollOwned
transportation equip & components
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Premium contentTOP PICK
Heico makes replacement parts for old airplanes, and has been thriving on Boeing’s woes. It boasts a 57.74% total return in the past year at a 15.95% profit margin. More impressive, reports David Driscoll, since 1970 Heico has risen 10,000% (on par with Amazon) and its parts have never been in an accident in that time. Brett Girard adds that Heico’s aerospace division will benefit from the cosmic plans of Jeff Bezos and Richard Branson who are building an outer space tourism industry. Luckily, Heico dodged the trade war, because it has no business in China. However, Driscoll warns that Heico has flown too high, too fast, currently trading at a PE just under 50. Wait for a 20% pullback, then hang onto it.
transportation equip & components
BUY
In the last 5 years, its dividend has grown 18% annually. You're paid to wait. Good. Over 10 years, the stock is up nearly 1,000%. They've done a good job supplying replacement parts for planes. Also, a growing segment is outer space, which has a long runway. Their price and dividend has performed very well historically.
transportation equip & components
BUY ON WEAKNESS
HEI is picking up contracts that Boeing is losing. HEI hasn't had an accident in nearly 50 years. But this stock price went too far, too fast, so he sold half his holding to balance his weighting. A solid business. Enter with a half-position. You'll get 20% annual dividend growth. It's risen 10,000% since 1970, on par with Amazon. Likes this company. Buy on 20% weakness, too high now at 42x earnings.
David DriscollOwned
transportation equip & components
PARTIAL BUY
They've done very well on the back of Boeing's woes. They make replacement parts for old planes, but it's not a cheap stock. He's taken a half position so he can be nimble. A good, long-term company despite a little volatility. They're acquisitive and smart with debt. Airlines are a little risky now, so he feels better being in the parts side, like Heico.
transportation equip & components
TOP PICK
An aerospace manufacturing company. Their parts have never been involved in any crashes. They grow their dividends at roughly 20%. He's happy to own it and hold for the next 10-20 years.
David DriscollOwned
transportation equip & components
PAST TOP PICK
(A Top Pick May 27/19, Up 32%) You're exposed to all the airplanes coming back into the fleet with the Max 8 out to cover those routes. Long-term it's been very strong. They have an electronic tech division that deals in outer space which is a growth area with Bezos' and Branson's space plans.
transportation equip & components
PARTIAL BUY
None of their aerospace parts have caused any accidents since they were formed in 1970. A quality company with quality goods. Q4 sales were up. If they're able to growth profits and dividends, then you can let this company run for you. Caveat: it's expensive, so buying half a position is OK. Plus, if we get another correction, the small caps will be more volatile. Have to make sure you're in quality small cap stocks, and this is one.
transportation equip & components
WAIT
Aerospace parts as well as electronic equipment. This has done exceptionally well over time. They are about to split their shares in May, which will probably be a 5 to 4 split, so he would hold back on buying this.
David DriscollOwned
transportation equip & components
It’s still expensive. Don’t have to worry about the tariffs because it’s mostly domestic. Very well run. If the market goes down 20%, small caps will go down 30%. He’s buying a half position for clients, but is waiting for true value to buy the other half.