Heico Corp’s share was heavily penalized and is now in an oversold situation near to a solid support area.
The company has strong fundamentals has shown by its Surperformance ratings. Sales and margin are increasing and this trend should continue in the coming years considering analyst’s estimations. Thus, revenues are expected to rise to 1.4 billion dollars by 2016 while net margin should exceed 11% at the end of the same fiscal year. Moreover, analysts have largely revised upward their estimates for both revenue and EPS, proving the good dynamic on the business activities. Furthermore, the stock is supported by a strong buy consensus and offers an interesting potential considering the average target price.
From a technical viewpoint, Heico is in a downtrend and should reach its USD 50.7 support level in the coming trading sessions. This level should stop the bearish movement as it did. Thus, the stock could find new energy and would climb towards the next resistance at USD 55.5.
Therefore, the proximity of the USD 50.7 support is an opportunity to take a long position in Heico. The first goal is a return in the USD 55.5 resistance area. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.
HEICO Corporation is a manufacturer of jet engine and aircraft component replacement parts. The Companyâs segments include Flight Support Group (FSG) and Electronic Technologies Group (ETG). FSG segment consists of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their subsidiaries. FSG uses technology to design and manufacture jet engine and aircraft component replacement parts. FSG repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for domestic and foreign commercial air carriers and aircraft repair companies, as well as military and business aircraft operators. ETG segment consists of HEICO Electronic Technologies Corp. and its subsidiaries. ETG designs, manufactures and sells various types of electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies and others.
HEICO CORPORATION 
