Heico: RSI Oversold, KDJ Golden Cross on 15min Chart

Heico's 15-minute chart has triggered an RSI Oversold reading and a KDJ Golden Cross at 09/02/2025 09:45, indicating that the stock price has experienced a rapid decline and has fallen below its fundamental support level. Furthermore, the momentum of the stock price is shifting towards the upside, suggesting that it has the potential to continue increasing in value.

Heico Corporation (HEI) has been the subject of significant analyst upgrades and positive technical indicators, suggesting that the stock may be undervalued. Baird Financial recently raised its price target for Heico to $400.00, an 11.11% increase from the previous target of $360.00, while maintaining its "Outperform" rating [1]. This move aligns with recent upgrades by RBC Capital and Morgan Stanley, who have also increased their price targets for HEI.

Heico, a supplier of replacement parts for commercial aircraft and components for defense products, operates through its Flight Support Group and Electronic Technologies Group segments. The company reported robust financial results for the third quarter, ending August 25, 2025. Revenue increased by 16% year-over-year (YoY) to $1.15 billion, while earnings per share (EPS) improved by 30% YoY to $1.26 [2]. The Electronic Technologies Group and Flight Support Group contributed significantly to this growth, with the Electronic Technologies Group seeing a 10.5% YoY increase in net sales and the Flight Support Group achieving a 17.8% YoY increase [2].

Despite the strong earnings report, Heico's stock has experienced a rapid decline, triggering an RSI Oversold reading and a KDJ Golden Cross at 09/02/2025 09:45. This indicates that the stock price has fallen below its fundamental support level and is poised for a potential rebound [3]. The momentum of the stock price is shifting towards the upside, suggesting that it may continue to increase in value.

Institutional investors have shown confidence in Heico, with Capital Fund Management S.A. increasing its position by 79.8%, acquiring a total of 23,959 shares valued at approximately $6.4 million [3]. Additionally, the company's recent acquisition of avionics company Gables Engineering, Inc., further supports the positive outlook.

However, the author of a recent article remains hesitant to invest at the current valuation, citing that the company's strategic acquisitions and strong operational performance are commendable, but the current valuation seems to be too high [4].

In conclusion, while the current valuation may be a deterrent for some investors, the recent analyst upgrades and positive technical indicators suggest that Heico may be undervalued. Investors should closely monitor the company's performance and the broader market conditions to make informed investment decisions.

References:
[1] https://www.ainvest.com/news/heico-price-target-raised-baird-400-00-maintains-outperform-rating-2508/
[2] https://www.ainvest.com/news/heico-terrific-company-great-execution-unattractive-valuation-2508/
[3] https://www.ainvest.com/news/heico-defensive-growth-play-aerospace-defense-powered-supply-chain-resilience-strategic-tailwinds-2508/
[4] https://www.ainvest.com/news/heico-achieves-strong-q3-results-sales-earnings-growth-2508/