During the lightning round of the September 29 episode of Mad Money, a caller sought Jim Cramer’s opinion of HEICO Corporation (NYSE:HEI), and he replied:
Well, I like HEICO, but do I ever hate the aerospace sector? I mean, I am suffering with Boeing for my Charitable Trust. I don’t want to put anybody anywhere near anything aerospace right now. We have to have oil down.
HEICO and The Boeing Company (NYSE:BA) operate in different parts of the aerospace industry. HEICO supplies aircraft replacement parts, repair and overhaul services, and specialty aerospace products, giving it significant exposure to the aftermarket. Boeing manufactures commercial aircraft and defense platforms, making production rates, deliveries and certification much more important to its financial performance. It is worth noting that on September 11, Cramer said that “Boeing is ready to go up.” You can read more here.
HEICO Continues to Deliver Growth
HEICO Corporation’s fiscal third-quarter results provide a sharp contrast with Boeing’s recent financial performance. Revenue rose 23% year over year to a record $1.41 billion, while net income increased 33% to $235.4 million, or $1.67 per diluted share. Organic net sales increased 14%. The Flight Support Group generated $947.8 million in revenue, up 18%, while operating income increased 24%. HEICO also completed a $1.2 billion senior-notes offering in July, consisting of $550 million of 4.950% notes due 2031 and $650 million of 5.400% notes due 2036. The company said it used the net proceeds to repay borrowings under its revolving credit facility.
The financing therefore changed the composition and maturity of HEICO’s debt rather than simply adding $1.2 billion to its borrowing needs. The more relevant concern for investors is whether HEICO can continue generating enough earnings and cash flow to support its acquisition-driven growth while carrying the new long-term notes.
Boeing Still Faces Production and Certification Problems
The Boeing Company reported second-quarter revenue of $24.6 billion, up 8% year over year, but recorded a $428 million net loss. Commercial Airplanes generated $11.8 billion of revenue and reported a negative 2.7% operating margin. In September, CEO Kelly Ortberg said stabilizing 737 MAX production at 47 aircraft per month was taking longer than expected because Boeing’s own 737 wing-production operation was not achieving the flow improvements needed to support the higher rate. The company is also working to increase 787 production to 10 aircraft per month.
Certification remains another constraint. The FAA delayed certification of the 737 MAX 10 while the company addresses a software issue affecting certain MAX aircraft. The agency said it had not yet determined whether the issue was a safety threat, but the delay adds another obstacle to Boeing’s certification schedule.
Bear Case Rests on Valuation and Execution
HEICO Corporation traded at 42.55x forward earnings as of September 23, according to Yahoo Finance. For context, NYU Stern’s January 2026 dataset covering 79 U.S. Aerospace/Defense companies showed a 45.87x forward P/E for the industry. The January figure is an industry benchmark rather than a September valuation snapshot. HEICO’s September multiple was slightly below that benchmark, but the valuation still places considerable importance on continued earnings growth. A meaningful slowdown in organic growth, weaker acquisition contributions, or margin pressure could make a multiple above 40x forward earnings harder to support.
The Boeing Company’s valuation carries a different set of risks. The stock traded at 49.51x forward earnings on September 23, above the January industry benchmark, despite the company’s latest quarterly loss. Its forward valuation seems to be based on expectations of a return to profitability, while production constraints and certification delays could affect the timing of that improvement.
Hedge Fund Positioning and Short Interest
Insider Monkey tracks more than 1,000 hedge funds. Its data showed 72 funds holding HEICO in the second quarter, compared with 74 in the first quarter. Boeing had 90 hedge fund holders in the second quarter, down from 99 in the first. As for HEICO’s short interest, it was about 2.5% of the public float, and Boeing’s was roughly 1.8% of the float. Cramer’s comment draws a distinction between his view of HEICO and his broader concern about the aerospace industry. HEICO Corporation’s aftermarket exposure and recent earnings growth set it apart from The Boeing Company, whose results remain tied more directly to production, certification, and delivery execution.
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