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We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where HEICO Corporation (NYSE:HEI) stands against other top growing aerospace and defense stocks for Trump’s Presidency.
There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.
As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.
The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.
Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.
To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers so far in 2025.
A fighter jet in formation, revealing the prowess of the companies defense arm.
HEICO Corporation (NYSE:HEI)
HEICO Corporation is a manufacturer, designer, and supplier of defense, aerospace, and electronic products and services. The company operates through Electronic Technologies Group (ETG) and Flight Support Group (FSG) segments. The stock is up over 11% this year.
HEICO’s bull thesis revolves around its two main segments ETG and FSG. The FSG segment brings in 66% of the total revenue. This part of the business provides aftermarket replacement parts which continue to be in demand thanks to the booming air travel industry.
HEICO offers aftermarket parts at a significant 30%-40% discount compared to competitors, so this part of the business is expected to capitalize on the booming air travel demand.
The other segment, ETG, makes components for defense, industrial, and aerospace applications. As nations continue to see defense as a critical piece of their existence, the company is set to reap the rewards, especially because contracts in this segment are usually long-term commitments that ensure a healthy cash flow and revenue.