Valued at a market cap of $17.4 billion, Huntington Ingalls Industries, Inc. (HII) is a Newport News, Virginia-based company that designs, builds, overhauls, and repairs military ships.
This aerospace and defense company has significantly outperformed the broader market over the past 52 weeks. Shares of HII have rallied 147.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.7%. Moreover, on a YTD basis, the stock is up 29.4%, compared to SPX’s marginal rise.
Zooming in further, HII has also notably outpaced the Invesco Aerospace & Defense ETF (PPA), which soared 54.9% over the past 52 weeks and 15.3% on a YTD basis.
On Feb. 5, shares of HII plunged 10.6% despite delivering stronger-than-expected Q4 results. Both its sales and service revenue of $3.5 billion and EPS of $4.04 handily topped the consensus estimates. Moreover, compared to the year-ago quarter, its top line improved 15.7%, and its bottom line grew 28.3%. Nonetheless, its shares recovered 7.7% in the subsequent trading session.
For fiscal 2026, ending in December, analysts expect HII’s EPS to grow 11.6% year-over-year to $17.18. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 12 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on five “Strong Buy” and seven "Hold” ratings.
The configuration is more bullish than a month ago, with one analyst suggesting a "Moderate Sell” rating.
On Feb.12, Bank of America Corporation (BAC) upgraded HII to “Neutral” and raised its price target to $400.
While the company is trading above its mean price target of $383.40, its Street-high price target of $465 suggests a 5.3% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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