Is HEI a good stock to buy? We found a bullish thesis on HEICO Corporation in The Investor’s Compass substack. In this article, we will summarize the bulls’ thesis on IES. HEICO Corporation stock was trading at $345.07 as of May 28.th. HEI’s trailing and forward P/E were 61.62 and 59.17 respectively, according to Yahoo Finance.
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HEICO Corporation is a leading aerospace and defense company specializing in FAA-approved aircraft spare parts and highly engineered components, positioning itself as a critical supplier within the global aviation safety and maintenance ecosystems. Its primary moat is rooted in regulatory certification, reliability and deep-rooted customer trust, as FAA approval is a long, expensive and rigid process that makes switching suppliers economically and operationally unattractive for airlines once a component is integrated into maintenance systems.
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This leads to extremely high switching costs and long-lasting, recurring demand. HEICO structurally benefits from long-term growth in global air travel and airlines increasingly focused on reducing costs without compromising safety, driving demand for high-quality spare parts that offer significant cost savings over OEM alternatives while maintaining identical regulatory standards.
Importantly, the company’s competitive advantage is largely insulated from the disruption of artificial intelligence, since even if AI accelerates design or engineering workflows, each component must pass the same strict regulatory approval cycle before being implemented in commercial aircraft, preserving the moat. Additionally, aviation safety culture makes reliability non-negotiable, reinforcing customer rigidity. Over time, this dynamic has allowed HEICO to increase significantly in value, with shares appreciating nearly 4,400% over the past two decades, reflecting the durability of its model even during cyclical industry downturns.
The combination of tailwinds to structural growth, regulatory barriers and high switching costs position HEICO as a long-duration compound with resilient earnings power and continued upside potential as global fleet utilization and maintenance intensity continue to increase, supporting sustained earnings growth and long-term shareholder value creation.
Previously, we covered a bullish thesis on HEICO Corporation (HEI) by Bulls On Parade in February 2025, which highlighted serial acquisitions and a capital allocation model similar to Berkshire. The HEI share price has appreciated approximately 56.24% since our coverage. The Investor’s Compass shares a similar view, but emphasizes the FAA certification moat and switching costs that drive lasting demand in the aftermarket.