Impressive Results Lifted HEICO Corp. (HEI) in Q1

Wasatch Global Investors, an asset management company, released its “Wasatch U.S. Select Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities declined in the first quarter due to potential tariffs and government funding cuts. Against this backdrop, the strategy was down but exceeded the Russell Midcap® Growth Index, which lost -7.12%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Wasatch U.S. Select Strategy highlighted stocks such as HEICO Corporation (NYSE:HEI). HEICO Corporation (NYSE:HEI) is a company that designs, manufactures, and sells aerospace, defense, and electronics-related products and services. The one-month return of HEICO Corporation (NYSE:HEI) was 5.52%, and its shares gained 39.66% of their value over the last 52 weeks. On June 25, 2025, HEICO Corporation (NYSE:HEI) stock closed at $316.73 per share, with a market capitalization of $38.353 billion.

Wasatch U.S. Select Strategy stated the following regarding HEICO Corporation (NYSE:HEI) in its Q1 2025 investor letter:

“One of the top contributors to the strategy’s performance during the quarter was HEICO Corporation (NYSE:HEI), a company that designs aircraft replacement parts and electronic components. The stock of HEICO was up considerably in February after the company reported impressive quarterly operating results, which included a 46% increase in net income from the same quarter the year before. We’ve gotten to know HEICO and its management team well through the years and continue to appreciate the durable, growing revenue streams associated with the business.”

A state-of-the-art commercial jetliner taking off, displaying the modernity of the company’s aerospace and defense division.

HEICO Corporation (NYSE:HEI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held HEICO Corporation (NYSE:HEI) at the end of the first quarter, which was 67 in the previous quarter. While we acknowledge the potential of HEICO Corporation (NYSE:HEI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of HEI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.