Despite the recent market turmoil, aerospace and defense component manufacturer Heico's (NYSE: HEI) stock is still up 175% over the last five years and 684% over the last decade. It's a startling reminder of just how good the aviation market has been since the last recession. That said, the challenges wrought on the commercial aviation industry by the COVID-19 pandemic are creating significant earnings headwinds. In this environment, is Heico stock a buy?
It's been a particularly brutal year so far for the aerospace industry. As the COVID-19 pandemic spread around the globe, it became clear that the air travel restrictions put in place to contain it would damage the aviation industry.
Heico needs aftermarket demand to remain strong. Image source: Getty Images.
Source Fool.com