TDG - Heico Shares Lost 12% in the First Half of 2020. Here's Why That's Actually Not So Bad
Shares of Heico (NYSE: HEI) fell 12.7% in the first half of 2020, according to data provided by S&P Global Market Intelligence, as the aerospace component manufacturer was dragged down by the COVID-19 pandemic and its impact on airlines.
It could have been worse: Heico held up relatively well compared to Boeing (NYSE: BA) and even TransDigm Group (NYSE: TDG), which is often cited as Heico's best comparison. Those stocks were off 43% and 21%, respectively.
Airlines have had a tough time managing through the pandemic, which has caused travel demand to plummet. Airlines are expected to report second-quarter revenue down 90% year over year, and with cash not coming through the door, the carriers have been forced to ground planes and put off expansion plans.