Is Heico (HEI) Stock Outpacing Its Aerospace Peers This Year?
For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Heico (HEI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.
Heico is one of 34 individual stocks in the Aerospace sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. HEI is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for HEI's full-year earnings has moved 4.95% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that HEI has returned about 78.25% since the start of the calendar year. Meanwhile, the Aerospace sector has returned an average of 26.67% on a year-to-date basis. This shows that Heico is outperforming its peers so far this year.
To break things down more, HEI belongs to the Aerospace - Defense Equipment industry, a group that includes 20 individual companies and currently sits at #148 in the Zacks Industry Rank. Stocks in this group have gained about 33.15% so far this year, so HEI is performing better this group in terms of year-to-date returns.
Going forward, investors interested in Aerospace stocks should continue to pay close attention to HEI as it looks to continue its solid performance.
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