10 Defense and Aerospace Stocks To Benefit From Trump’s Peace Through Strength Policy

5. HEICO Corporation (NYSE:HEI)

HEICO Corporation is a manufacturer, designer, and supplier of aerospace, electronic, and defense-related products and services. It operates through two segments: the electronic technologies group (ETG) and the flight support technologies group (FSG). HEI continues to be a defense growth story as well as a beneficiary of the air travel recovery witnessed in the past year.

KeyBanc Capital Markets rated the stock Sector Weight last month when its analysts initiated coverage on the company. The reason for this was the current valuation that the industry trades at, which is above the historic valuation range. This limits future gains. However, HEI’s unique market position enables it to survive any industry-wide downturn, especially if the air travel recovery slows down as this is a discretionary expenditure for many.

On the other hand, defense spending may not necessarily slow down even if Donald Trump is able to resolve international disputes. To maintain peace, countries will be willing to increase defense spending and that should benefit HEI.

The company’s USP is that it makes quality equipment that sells at 30%-40% less than competitors. As long as it is able to maintain this advantage, it should be able to do well even if all the potential headwinds materialize.