Why Shares of Heico Fell Today
Shares of Heico (NYSE: HEI) fell nearly 10% on Wednesday on growing concerns the long commercial aerospace buying spree might soon be coming to an end. Airlines are adjusting flying plans to deal with the COVID-19 coronavirus outbreak, and that could mean the need for fewer planes in the future.
Shares of aerospace component supplier Heico have had a remarkable run over the past decade, gaining more than 733% compared to the S&P 500's 139% gain, thanks to strong demand for Boeing (NYSE: BA) and Airbus (OTC: EADSY) jets. Traditionally, commercial aerospace has been a cyclical business, and heading into 2020 there were warning signs that demand for larger aircraft might be waning.
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Source Fool.com
