Huntington Ingalls Industries: Assessing Valuation After Q3 Earnings Beat and Operational Progress

Huntington Ingalls Industries (HII) shares got a lift after the company’s third quarter earnings topped expectations, with revenue coming in 8% above estimates. The announcement also highlighted ongoing progress on 2025 goals.

See our latest analysis for Huntington Ingalls Industries.

It has been a standout year for Huntington Ingalls Industries, with recent ship deliveries and completed sea trials adding momentum to an already impressive run. The share price has climbed 67.5% year-to-date, and a robust 61.7% one-year total shareholder return highlights growing confidence in the company’s long-term prospects, supported by operational milestones and consistent earnings surprises.

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With shares surging on strong results and high-profile ship deliveries, the key question now is whether Huntington Ingalls Industries remains undervalued or if the market has already priced in the company’s future growth potential.

Most Popular Narrative: 5% Undervalued

The current narrative places Huntington Ingalls Industries’ fair value at $331.89, a modest premium to its last close of $314.31. This reflects elevated expectations for growth and improved profitability, even though margin pressure has been factored into the calculation.

The revitalization and expansion of the U.S. maritime industrial base, supported by increased outsourcing, supply chain stabilization efforts, and targeted workforce investments (notably effective wage increases and hiring), are enabling HII to execute a 20% throughput improvement plan. This directly translates into enhanced cash flow and improved earnings consistency.

Read the complete narrative.

Curious about the financial leaps powering this price target? One metric under the microscope is a significant projected rise in profitability. Uncover which bold analyst assumptions and operational upgrades are steering this narrative’s calculations. Don’t miss the number that could change your view of the stock.

Result: Fair Value of $331.89 (UNDERVALUED)

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

However, persistent supply chain challenges and potential delays on crucial contracts still threaten to derail Huntington Ingalls Industries' growth momentum and valuation outlook.

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

Build Your Own Huntington Ingalls Industries Narrative

Not convinced by the consensus, or want to challenge the numbers yourself? In just a few minutes, you can put together your own take. 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.

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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.

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