11 Best Aerospace and Defense Stocks to Buy Right Now

5. HEICO Corporation (NYSE:HEI)

Number of Hedge Fund Holders: 57

HEICO Corporation (NYSE:HEI) is one of the best aerospace and defense stocks to buy right now. It engages in the manufacturing of parts for airplane engines and components. The company operates through two main segments including Flight Support Group (FSG) and Electronic Technologies Group (ETG).

The company has seen a substantial increase in its stock price, up 45% year-to-date, mainly due to high demand for its replacement parts to support existing aircraft fleets. During the first half of fiscal 2024, the company grew its revenue from aftermarket replacement parts by 79%, reaching $1.2 billion. Another notable factor contributing to this growth is a $2 billion acquisition of the Aerial Delivery and Descent Devices divisions of Capewell Aerial Systems, which HEICO Corporation (NYSE:HEI) made in 2023. It has expanded the company’s portfolio of aftermarket products.

The company posted encouraging results for its fiscal third quarter of 2024 as well. Its net sales increased by 37% to reach a record $992.2 million, whereas the operating income rose by 45% to a record $216.4 million. The growth was driven by sixteen consecutive quarters of sequential net sales growth at its Flight Support Group (FSG). Given the ongoing issues within the aviation industry, including Boeing’s quality control challenges, HEICO Corporation (NYSE:HEI) is well-positioned to benefit from increased demand for its products.