Huntington Ingalls Industries, Inc. (HII) - Stock Analysis
Last updated: Sep 5, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Defense name with a clear earnings catalyst: Q2 2026 adjusted EPS of $5.27 beat the $3.80 estimate, sales were $3.4B, backlog was about $57.3B, and recent Navy/submarine/UUV contracts support visibility. Shares are up from 268.76 to 327.01 over 21 trading days.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Margin Improvement ⢠Cash Flow Weakness ⢠Moderate Leverage HII offers improving profitability and cheaper valuation, but sharply depleted cash and negative quarterly free cash flow warrant near-term caution.
Price Behavior
Key Price Behavior Insights: ⢠Sharp monthly decline ⢠Deeply oversold momentum ⢠Resistance overhead Support Level: $285â$286 Resistance Level: $294â$296 HII is in a bearish last-month trend after a 13.2% drop to $285.93, with oversold conditions suggesting rebound potential but sellers retaining control below $294â$296 resistance.
Sentiment & News
Key News Insights: ⢠Raised guidance ⢠Submarine demand ⢠Major contracts HII's stronger earnings, raised shipbuilding outlook, and major defense contracts signal accelerating Navy-driven growth and expanding production capacity.
AI Summary
HII's thesis is shifting from backlog visibility to proving that improved labor retention, automation, and capacity expansion can convert submarine demand into sustained throughput, margin gains, and cash flow; investors should wait for evidence of normalized free-cash-flow conversion and execution progress before treating the oversold share price as a durable entry point.
Description
Huntington Ingalls Industries is a U.S. shipbuilder and maritime services company operating three units: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. It designs, constructs, and overhauls a range of surface and nuclear-powered vessels for the U.S. Navy and Coast Guard, and provides nuclear refueling, maintenance, and disposal services. The firm also delivers lifecycle sustainment, naval nuclear support, specialized IT and mission services for defense and federal clients, and environmental and management services to government and industry; it was founded in 1886 and is based in Newport News, Virginia.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Aug 3 | Aug 10 | HII | Huntington Ingalls Industries, Inc. | Defense name with a clear earnings catalyst: Q2 2026 adjusted EPS of $5.27 beat the $3.80 estimate, sales were $3.4B, backlog was about $57.3B, and recent Navy/submarine/UUV contracts support visibility. Shares are up from 268.76 to 327.01 over 21 trading days. | Closed | +1.5% |