A Look at Huntington Ingalls Industries’s Valuation Following Strong Q3 Results, New Contracts, and Technology Wins

Huntington Ingalls Industries (HII) caught investors’ attention after reporting third-quarter results that showed revenue and profits on the rise, while reaffirming its fiscal 2025 outlook. The company’s $2 billion in new contracts expanded its backlog, which provides additional visibility.

See our latest analysis for Huntington Ingalls Industries.

Momentum has clearly gathered behind Huntington Ingalls Industries this year, as the share price has climbed 65% since January and the latest total shareholder return for one year sits at an impressive 56.7%. Recent operational wins, from $2 billion in new contracts to a breakthrough in autonomous unmanned vessels with Shield AI, have underscored investor confidence. Deepened international partnerships and leadership changes further reinforce the sense of a company hitting its stride for the long term.

Looking for more opportunities in aerospace and defense? Expand your watchlist and uncover fresh ideas with our curated picks. See See the full list for free..

With shares soaring and fresh wins piling up, investors now face a critical question: does Huntington Ingalls Industries still present untapped value, or has the market already priced in its next wave of growth?

Most Popular Narrative: 2.4% Undervalued

With Huntington Ingalls Industries closing at $309.56 and the most-watched fair value estimate at $317, the narrative suggests shares still have modest upside beyond recent highs. But what is driving this outlook, and what could shift it?

“Favorable defense policy trends, new tech segment wins, and backlog growth drive strong long-term revenue potential, margin expansion, and cash flow stability. Operational improvements, tech partnerships, and industrial base revitalization enhance efficiency, reduce costs, and support consistent earnings growth.”

Read the complete narrative.

Curious why the consensus is holding firm to its price target? It’s all about the interplay of persistent growth levers, strategic tech bets, and a disciplined path to expanding margins. There are also bold assumptions about the company’s competitive edge over the next few years. If you want to know the specific growth projections and the investor expectations baked into this number, you’ll have to read the full story.

Result: Fair Value of $317 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent supply chain delays and prolonged labor shortages could still disrupt Huntington Ingalls Industries’ margin momentum and compromise its long-term growth trajectory.

Find out about the key risks to this Huntington Ingalls Industries narrative.

Build Your Own Huntington Ingalls Industries Narrative

If the current outlook doesn’t reflect your perspective, or you want to dig into the details yourself, you can craft your own story in just a few minutes. Do it your way.

A great starting point for your Huntington Ingalls Industries research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Ready to Find Your Next Opportunity?

The next game-changing investment could be just a few clicks away. Don’t let new trends and undervalued stocks pass you by when smart ideas are at your fingertips.

• Boost your portfolio’s income with reliable options. Check out these 16 dividend stocks with yields > 3% and tap into companies offering impressive yields above 3%.
• Seize the edge in healthcare innovation by browsing these 32 healthcare AI stocks, featuring companies harnessing artificial intelligence for breakthrough medical solutions.
• Uncover untapped value now by scanning these 875 undervalued stocks based on cash flows, focused on stocks that the market may be overlooking based on their strong cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com