There weren’t any S&P 500 earnings reactions yesterday…
But one earnings reaction really stood out to us.
While most of the market’s attention is fixated on tech and AI, Heico Corp $HEI has quietly emerged as one of the strongest earnings performers in the Aerospace and Defense space.
This company isn’t your typical defense contractor.
They specialize in manufacturing and servicing critical aerospace components, including FAA-approved replacement parts and high-reliability electronic systems used in military, commercial, and space applications.
It’s a high-margin, high-moat business - and the market is noticing.
The fundamental backdrop for Aerospace & Defense has rarely looked this strong.
Geopolitical tensions are rising.
Global defense budgets are expanding.
And commercial air traffic continues to rebound post-COVID.
The iShares U.S. Aerospace & Defense ETF $ITA is flying higher 🚀
The iShares Aerospace & Defense ETF includes GE Aerospace $GE, RTX $RTX, Boeing $BA, and Heico $HEI.
Price recently broke out to new all-time highs after a multi-month consolidation below a key Fibonacci extension level. These days, kids refer to candlesticks like this as "God Candles."
This kind of sector strength provides a powerful tailwind for individual leaders… and few are performing better than HEI.
Here's the setup in HEI 👇
Heico has been rewarded for 4 of its last 5 earnings reports, including last quarter's best earnings reaction since 2010.
This quarter? Another blowout.
The Flight Support Group achieved 14% organic net sales growth, 16% organic growth in aftermarket parts and distribution, 11% in component repair, and 9% in specialty products.
This was the 19th consecutive quarter of net sales growth in the Flight Support Group.
Net income surged 27% year-over-year to a record $156.8M
The fundamental momentum behind this company is off the charts, and the market is loving it.
The stock responded to its latest earnings report with a gap-and-go breakout to fresh all-time highs, completing a beautiful multi-month base.
From a technical and fundamental standpoint, this is as clean as it gets.
As long as HEI is above 283, we believe the path of least resistance is higher, with industry leadership and fundamental momentum pushing it forward.
Thank you for reading.
- The Beat Report Team
PS: Our special Memorial Day offer of 25% off ASC Premium ended last night, but call or email Mary if you still want to get in. You can reach her at 323-421-7910 or mary@stockmarketmedia.com.
With an ASC Premium membership, you can get instant access to every ASC market scan, plus hundreds of trade ideas and thousands of charts.
If you find our content valuable, we would greatly appreciate it if you could shareit with your friends, family, and colleagues. Your help in spreading the word is invaluable in supporting our work. Thank you to all of you who share!
