What Happened?
A number of stocks fell in the afternoon session after the broader market fell as a spike in oil prices and Treasury yields rattled investors.
The sell-off was triggered by escalating geopolitical tensions related to the Iran conflict, which pushed oil prices up. This surge in energy costs fueled concerns about war-related inflation, leading to a significant reaction in the bond market. The 10-year Treasury note yield jumped nine basis points to 4.57%, its highest level in a year. Investors were concerned that persistent inflation could lead to further interest rate hikes, putting pressure on corporate valuations and prompting a pullback from record highs.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Engineered Components and Systems company ESCO (NYSE: ESE) fell 1.7%. Is now the time to buy ESCO? Access our full analysis report here, it’s free.
- Electrical Systems company Sanmina (NASDAQ: SANM) fell 2.8%. Is now the time to buy Sanmina? Access our full analysis report here, it’s free.
- Gas and Liquid Handling company Helios (NYSE: HLIO) fell 2.6%. Is now the time to buy Helios? Access our full analysis report here, it’s free.
- Aerospace company HEICO (NYSE: HEI) fell 3%. Is now the time to buy HEICO? Access our full analysis report here, it’s free.
- Electrical Systems company Atkore (NYSE: ATKR) fell 2.9%. Is now the time to buy Atkore? Access our full analysis report here, it’s free.
Zooming In On HEICO (HEI)
HEICO’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock gained 2.7% on the news that the de-escalation of Middle East tensions improved the long-term demand forecast for commercial aviation.
As airlines see their profit margins recover due to lower fuel costs, their ability to finance new, fuel-efficient aircraft orders increases. Major aerospace manufacturers are seeing a relief rally as investors anticipate a stabilization in the commercial order backlog.
The reopening of critical trade routes also eases supply chain bottlenecks for specialized raw materials and components. For an industry that relies on precise "just-in-time" manufacturing, the reduction in geopolitical friction ensures more reliable production schedules. While defense-related contracts may see a slight cooling in sentiment, the robust recovery in the commercial segment is more than compensating for it.
HEICO is down 12.2% since the beginning of the year, and at $289.15 per share, it is trading 19.2% below its 52-week high of $358.04 from January 2026. Despite the year-to-date decline, investors who bought $1,000 worth of HEICO’s shares 5 years ago would now be looking at an investment worth $2,161.
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