Huntington Ingalls Industries (HII): Is the Defense Giant’s Valuation Keeping Up With Its Recent Rally?

Huntington Ingalls Industries (HII) has caught investors’ attention lately, with its share price delivering a 17% gain over the past 3 months. The stock’s recent performance stands out among large U.S. defense contractors.

See our latest analysis for Huntington Ingalls Industries.

Momentum has really picked up for Huntington Ingalls Industries in 2024, with its share price rallying over 65% year-to-date. That is especially eye-catching when combined with a 1-year total shareholder return of nearly 62%, hinting that investors are warming up to its long-term outlook after a stretch of steady performance.

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Still, with a strong rally already in the books, investors may wonder whether Huntington Ingalls Industries remains undervalued or if the market has already priced in its future growth. Could this be the right moment to buy, or has the upside run its course?

Most Popular Narrative: 2.4% Undervalued

With a fair value estimate of $317.22 standing just above the latest close of $309.74, the prevailing narrative suggests Huntington Ingalls Industries still has modest room to run. This reflects newfound confidence in its long-term growth arc.

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.

Want to peek behind the numbers? The engine of this story is an ambitious forecast for revenue, profits, and a compelling future multiple set against sector headwinds. Intrigued by what really powers this price target? Explore the surprising dynamics shaping the current fair value before the assumptions are common knowledge.

Result: Fair Value of $317.22 (UNDERVALUED)

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

However, persistent supply chain delays or sudden shifts in U.S. defense spending priorities could quickly change Huntington Ingalls Industries' earnings outlook and valuation case.

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

Build Your Own Huntington Ingalls Industries Narrative

If you think the story is different or want to see what the numbers show for yourself, you can build your own perspective in 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.

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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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