B/E Aerospace Inc (BEAV): Can This Stock Keep Flying High?

Where next for Heico?

Putting all of these things together would paint a picture of a company firing on all cylinders amid some favorable market conditions. On the other hand, investing is about finding the best value proposition rather than buying a stock when all the good news is already in the price.

As discussed in the bullet points above, HEICO Corporation (NYSE:HEI) is going to have to deal with sequestration issues which will affect defense-related revenues. The space industry is somewhat variable and the FSG will have to keep executing at the current high level to drive future upside. So, there is some risk here. On a forward free cash flow yield of 4.5% (according to my calculations), I think it is fairly valued and better to wait for a dip before buying into this high quality company.

Lee Samaha has no position in any stocks mentioned. The Motley Fool recommends Heico.

The article Can This Stock Keep Flying High? originally appeared on Fool.com.

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