Heico Corp is an aerospace and electronics company that supplies products to niche markets such as spacecraft, defense equipment, aircraft, medical equipment, and telecommunications systems. Heico has over 11,000 FAA-approved (Federal Aviation Administration) parts and can facilitate more than 6000 DER-approved repairs. (Designated Engineering Representative) The mission-critical nature of these products involved means that expertise and reputation, which Heico has built over the years, serves as a deep specialist area. Heico is, therefore, poised to grow over the longer term.
A snapshot of the 20-year monthly chart of Heico Corp shows the uptrend that the company’s stock has been in for the last five years. The stock hit an all-time high of 147.93 in August 2019. Since then, the stock fell by almost 50%.
In April 2020, the stock broke the bottom of the long-term trend and a historical support level. Since then, it has retraced more than 23% and looks poised to go up further. The next likely target would be the previous peak at 147 and then the top of the long-term trend at 155. Stop-loss can be placed below the historical support level somewhere close to 70.
Positions have been taken at $88.51, With stop loss at $66.25, 43% below the entry point. Short-term investors take a profit point at $147$, Giving a profit of 66%.