Should I Buy HEI? HEI 2026 Analysis

Should You Buy HEICO Corp (HEI) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

326.670

1 Day change

1.36%

52 Week Range

361.690

Analysis Updated At

2026/02/04

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Buy now (dip-buy setup): Price ($328.92) pulled back sharply (-2.67% today) and is approaching first support (S1 $322.48), while fundamentals and Street targets still imply upside.
Tactical edge for an impatient buyer: Oversold/near-oversold conditions + bullish options positioning favor taking the entry rather than waiting for a “perfect” level.
Base case: Near-term chop is possible, but the 1-month pattern model points to +8.64% potential, and analysts’ targets cluster well above current price.
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.

Technical Analysis

Trend/Momentum: MACD histogram -2.859 and expanding negatively = downside momentum still present (trend is currently bearish/weak).
RSI: RSI(6) 26.11 = oversold/near-oversold, suggesting selling pressure may be getting stretched and a bounce is increasingly likely.
Moving averages: Converging MAs = consolidation/transition phase; not a clean uptrend signal yet.
Key levels:
- Pivot: 334.12 (price below pivot = bearish bias until reclaimed)
- Support: 322.48 (S1) then 315.29 (S2)
- Resistance: 345.76 (R1) then 352.95 (R2)
Read-through: Technically weak trend but improving risk/reward as price nears support; a reclaim of 334 would strengthen the bounce thesis.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Put/Call OI 0.34 is call-heavy (bullish positioning).
Flow today: Volume is small (73 contracts vs ~581 10D avg), so today’s put/call volume skew is less reliable as a conviction signal.
Volatility: 30D IV 31.56 vs HV 28.21 = options pricing in modestly higher forward uncertainty; IV percentile 66.93 suggests IV is elevated relative to its own history (useful for sellers, but also reflects event risk).
Net take: Options market positioning is broadly bullish (low put/call), but today’s tape is light—sentiment signal is supportive, not definitive.

Technical Summary

Sell

Buy

Positive Catalysts

- Business momentum: Aerospace aftermarket tailwinds + defense/space demand are repeatedly cited by analysts as durable growth drivers.
- Product/news tone (positive): Space-grade power product launch (VPT converter meeting NASA Class D requirements) supports the “defense/space electronics” narrative.
- Earnings catalyst ahead: Next earnings QJAN 2026 on 2026-02-26 (After Hours); if execution matches recent strength, it can re-rate the recent dip.
- Street targets above spot: Recent targets raised into the $370–$391 range, implying upside from ~$329 even after accounting for valuation concerns.
- Quant/pattern signal: Similar-pattern projection shows +8.64% expected directionality over the next month.

Neutral/Negative Catalysts

- Technical pressure: Bearish MACD and price below pivot (334) indicate sellers still control the tape short-term.
- Valuation overhang: Multiple firms flag HEI’s premium valuation as the key reason for Neutral/Hold stances.
- Event risk: Earnings on 2026-02-26 can cut both ways; any miss/guide-down could break support at $322/$315.
- News noise: Part of the provided news feed references Nu Holdings (not HEI-related), offering no direct catalyst support for HEI.
- Flows/positioning backdrop: Hedge funds and insiders show Neutral activity—no strong “smart money” confirmation in the provided data.

Financial Performance

Latest quarter: 2025/Q4 showed strong acceleration:
- Revenue $1.209B, +19.31% YoY
- Net income $188.3M, +34.80% YoY
- EPS $1.33, +34.34% YoY
- Gross margin 42.87%, +2.88% YoY (margin expansion = quality growth)
Growth read: Profit and EPS are growing faster than revenue, consistent with operating leverage and mix improvement.
Political/Congress activity: No recent congress trading data available; no politician/influential-figure transactions provided.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent direction: Predominantly price target raises following strong FY25/Q4 results (e.g., Truist to $391, RBC to $375, Stifel to $370, UBS to $371).
Ratings mix: Many Buy/Outperform views remain, but several Neutral/Hold ratings persist largely due to valuation premium.
Latest notable change: Susquehanna initiated Neutral with $385 PT (acknowledges strong multi-year growth potential but sees valuation limiting near-term upside vs peers).
Wall Street pros: Durable aerospace aftermarket tailwinds, defense/space opportunity, margin expansion, proven bolt-on M&A playbook.
Wall Street cons: Premium valuation and relative upside opportunity elsewhere in A&D coverage.

10 Analyst Rating

Wall Street analysts forecast HEI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HEI is 365.68 USD with a low forecast of 303.09 USD and a high forecast of 400 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

9 Buy

1 Hold

0 Sell

Strong Buy

Current: 322.300

Low

303.09

Averages

365.68

High

400

Current: 322.300

Low

303.09

Averages

365.68

High

400

Susquehanna

Neutral

initiated

$385

AI Analysis

2026-01-23

Reason

Susquehanna

Price Target

$385

AI Analysis

2026-01-23

initiated

Neutral

Reason

As previously reported, Susquehanna initiated coverage of Heico with a Neutral rating and $385 price target. While the firm believes Heico is well-positioned for 8% compound annual growth in revenue and a 13% free cash flow compound annual growth rate from FY26-FY28 based on aftermarket tailwinds in commercial aviation and sustained investment in defense and space, it cites the stock's "current sizable premium valuation" for its Neutral rating. The firm sees more upside opportunity from other stocks within its A&D coverage at this time, the analyst added.

Susquehanna

Charles Minervino

Neutral

initiated

$385

2026-01-23

Reason

Susquehanna

Charles Minervino

Price Target

$385

2026-01-23

initiated

Neutral

Reason

Susquehanna analyst Charles Minervino initiated coverage of Heico with a Neutral rating and $385 price target.

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HEI Should I Buy

HEI Should I Buy

Should You Buy HEICO Corp (HEI) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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