10 Best Aerospace and Defense Stocks to Buy According to Hedge Funds

8. HEICO Corporation (NYSE:HEI)

Number of Hedge Fund Holders: 74

HEICO Corporation (NYSE:HEI) is among the 10 Best Aerospace and Defense Stocks to Buy According to Hedge Funds. On June 1, Citigroup analyst John Godyn hiked the firm’s price target on the stock to $403 from $323 and maintained a Buy rating.

The firm described Heico as a ‘reliable compounder’ and said it had raised estimates for the company following its second-quarter earnings beat.

On the same day, UBS also lifted its price target on HEICO Corporation (NYSE:HEI)’s shares to $390 from $371, while keeping a Neutral rating.

According to TipRanks, the firm noted the robust performance in Q2 and added that EBITDA estimates were rising amid strong demand in the commercial aerospace and defense markets. In a research note to investors, UBS said that it was not seeing a slowdown in the aftermarket despite the Iran war and high energy prices.

As of the close of business on June 5, the stock is a Moderate Buy with an average share price upside potential of 18%.

The company reported a record net income of $233.8 million in the quarter, up 49% year-over-year. Earnings per diluted share came in at $1.66. Net sales also grew 25% from the prior year to a record $1,375.7 million.

HEICO Corporation (NYSE:HEI) is a leading manufacturer of jet engines and aircraft component replacement parts.