Four Rate Hikes this Year

According to the futures market, the odds of the Fed raising interest rates four times this year is 33.5%. That’s up from 25% a week ago. In my opinion, it’s closer to 5%. Alas, I’m not on the FOMC.

I also wanted to mention that HEICO (HEI), a former Buy List all-star, reported earnings after today’s close. I like this stock a lot but I don’t like the price.

As usual, the earnings report was very good. Q1 sales rose 18% to $404.4 million, and EPS hit 45 cents per share. That’s five cents more than estimates. Last month, HEICO also split its stock 5-for-4.

HEICO is raising its full-year forecast. Before, they saw net sales and income rising by 10% to 12%. Now they see net sales rising by 12% to 14% and net income rising by 30% to 32%. That’s thanks to tax reform.

HEI is up 3.1% after hours. I would love to have HEICO back on the Buy List, but it’s way too pricey.

Posted by on February 27th, 2018 at 7:27 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.