What changed
$HEI — AVOID 📊 | 6 MONTHS THESIS
🧭 Conviction: HIGH
HEICO Corporation provides aerospace, defense, and electronic related products and services in the United States and internationally.
🎯 FQ2 FY2026 (ends Apr) | reported May 27 | Rev $1.4B | EPS $1.66 vs $1.33 🟢 | Margin 25.5%
💡 Consensus likely extrapolates the beat and strong growth indefinitely. The variant view: at this multiple, any deceleration in organic growth or margin slippage—even a single miss—triggers a swift multiple compression, erasing far more value than a continued beat could add.
🏢 Business Quality: 9/10
📊 Valuation: rich
🔮 Catalyst: Next earnings report (FQ3 FY2026, est. August 2026)
⚖️ Avoid long positions: HEI is a great business but a dangerous stock at 53x earnings with no fresh catalyst and a fair value likely 40–60% below current price.
📊 Our read: AVOID. Full analysis →
https://stockduty.xyz/s/HEI0701
Also in play: $CAT $GE $GEV $RTX $DE