📈 When it comes to successful investing, focusing on companies with strong and sustained earnings growth is key. HEICO (NYSE:HEI) stands out in this area, having grown its earnings per share (EPS) by an impressive 18% annually over the last three years. This steady rise in EPS naturally attracts long-term investors, and it’s no surprise the stock trades at a high multiple of earnings. Beyond the strong earnings, HEICO also showed significant revenue growth last year, with a 43% increase to $3.8 billion.
💼 Another crucial aspect? The company’s leadership is fully aligned with shareholders. Insiders own a 14% stake, valued at $4.5 billion. This level of insider investment is a clear sign that management has confidence in the company’s future. When leaders have skin in the game, decisions tend to benefit shareholders, ensuring sustainable growth for the long term.
📊 In addition to EPS growth, HEICO has demonstrated a remarkable increase in cash flow. Year-over-year cash flow growth stands at 23.9%, far above its industry peers. This robust cash flow gives the company flexibility to expand its business without expensive external funding, making it an attractive option for growth investors.
💡 It’s not just about past performance – HEICO’s future looks bright too. Analysts predict a 19.5% increase in EPS this year, outpacing the industry average of 16.8%. This upward trend in earnings estimates shows that experts remain confident in the company’s ability to deliver strong returns.
🚀 For investors seeking a growth stock with a proven track record and strong insider backing, HEICO is certainly one to watch. With solid financials, steady earnings growth, and insider buy-in, it presents a compelling opportunity for long-term investors.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.