Daily Stock Opinions and Ratings

Opinions

David DriscollHEICO CORPHEIWAITAug 25, 2020

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 Driscoll

Owned

Unlock Rating

$110.00

Stock price when the opinion was issued

$336.99

As of Jun 18, 2026. Market Open.

transportation equip & components

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

BUY ON WEAKNESS

Very high quality business.
Never cheap enough to justify investment.
Company very skilled at M&A.
Strong demand for aircraft parts.
Would invest if share price ever falls.
Sees demand for air travel growing.

BUY

HEI makes generic, cheaper airplane parts and has a long track record. Thus, they enjoy wide margins.

Premium content

It's a Monthly Gems opinion which is available only for Stockchase Premium

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP 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.

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.

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.

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.

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.

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.

TOP PICK

Serial acquirers in aerospace and defense. Net income has grown 19% Y/Y since 1990. No sales in Asia, so they avoid the tariffs. Also provides replacement parts for older planes. Yield is 0.13%. (Analysts’ price target is $105.11)

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.

PARTIAL BUY

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.

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.

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

Most Recent Experts

Stockchase Insights

5i Research

Brian Acker, CA

Acker Finley Inc.

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

David Burrows

Barometer Capital Management

Jim Cramer - Mad Money

CNBC

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

David DriscollHEICO CORPHEIWAITAug 25, 2020

You might be interested:

HEICO CORP(HEI)

HEICO CORP(HEI)

It's a Monthly Gems opinion which is available only for Stockchase Premium

HEICO CORP(HEI)

HEICO CORP(HEI)

HEICO CORP(HEI)

HEICO CORP(HEI)

HEICO CORP(HEI)

HEICO CORP(HEI)

HEICO CORP(HEI)

HEICO CORP(HEI)

HEICO CORP(HEI)

HEICO CORP(HEI)

Latest Buy Signals

Today's Top Picks

Popular Articles

Latest Sell Signals

Most Recent Experts

Stockchase Insights

Brian Acker, CA

The Weekly Buzzing Stocks by Billy Kawasaki

David Burrows

Jim Cramer - Mad Money