Huntington Ingalls Industries, Inc. (HII) - Stock Analysis

Last updated: Sep 12, 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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Idea window: 8/3/2026 – 8/10/2026Sector: Industrials

AI Analyst Overview

Last Price
$277.14
Market Cap
$10.92B
1D Return
-0.34%
YTD Return
-17.52%

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Valuation Metrics

P/E
16.5
P/B
2.1
P/S
0.8
EV/EBITDA
12.2
Div Yield
1.99%

Fundamental Analysis

5.0

Key Financial Insights: • Margin Improvement • Cash Flow Decline • Lower Leverage HII's improving margins, valuation, and leverage are offset by sharply weakened liquidity and negative free cash flow, warranting caution.

Valuation
LiquidityRisk

Price Behavior

4.0

Key Price Behavior Insights: • Lower highs • Oversold momentum • Support pressure Support Level: $279–$281 Resistance Level: $286–$291; $295–$300 HII remains in a last-month downtrend, with $279–281 support vulnerable and a rebound needing a move above $291, then $300, to signal stabilization.

Bearish
Oversold

Sentiment & News

7.0

Key News Insights: • Carrier Program Progress • Submarine Demand • Capacity Expansion HII is expanding Navy shipbuilding capacity, advancing carrier programs, and benefiting from strong submarine demand and investor interest.

Shipbuilding
DefenseGrowth
AI

AI Summary

6.0
Neutral

HII is a capacity-execution investment rather than a backlog story: Navy demand is robust, but upside depends on converting production investments into throughput, margin expansion, and normalized free cash flow amid labor and supplier constraints. Investors should await evidence of cash-flow recovery and sustained margin improvement before treating the oversold share price as a durable entry point.

NavalDemand
ExecutionRisk
CashFlow
AI summary updated 5 days ago

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

DateCloseTickerCompanySummaryStatusP/L
Aug 3Aug 10HIIHuntington 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%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.