Heico Stock Joins GE, AeroVironment On Breakout Index

Defense and Space Company Hiko (HEI) has just joined its industry peers General Electric Aerospace (General Electric) and AeroVironment (AVAV) on Investors’ Daily Business Stock Index. After bouncing back above the 50-day moving average, Heico stock is now looking to breakout.

The maker of aircraft components and photovoltaic systems received a strong composite rating of 97, behind GE’s best possible rating of 99. Both companies hail from the Aerospace/Defense group, which is ranked No. 32 out of 197 industries tracked by IBD.

See who’s joining Heico, GE in the IBD Breakout Stock Index

Heico reports record results, looks forward to a strong year

On August 25, Heico reported record revenue and strong demand for the third quarter. Sales rose 16% year over year to more than $1.14 billion. Earnings growth rose 30% to $1.26 per share.

When the company reports fourth-quarter numbers on December 22, analysts expect another 16% increase in sales to $1.17 billion and earnings growth of 22% to $1.21 per share.

For the full year, Wall Street expects a 34% rise in earnings to $4.78 per share.

While the Accumulation/Distribution rating is C+, there are 54 IBD-rated A+ funds that have a position in Heico stock.

In a sign of rising market leadership, its relative strength line has begun to shift upward. To confirm this trend, look for the RS line to close at the 52-week high as Heico prepares for a potential breakout.

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As GE Aviation continues, Heico stock aims to breakout

Heico continues to operate on a flat base for the second phase with a buy point of 338.92. Stocks fell on Wednesday, but the base remains intact.

In a sign of rising technical strength, its short-term 21-day EMA appears poised to rise back above the longer-term 50-day line.

Meanwhile, GE stock continues to float around its all-time high in tight, healthy trading along a 10-week bullish line. After hitting a record high last month, fellow airline AeroVironment fell below its 50-day benchmark.

IBD Breakout Opportunities ETF

The IBD Breakout Opportunities ETF (BOUT) from Innovator Capital Management tracks the IBD Breakout Opportunities ETF (BOUT). As with other ETFs, this fund allows you to invest in the entire index in addition to or instead of purchasing individual stocks. Learn more here about ETF and Innovator.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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