HII Stock Analysis — Huntington Ingalls Industries
Sector: Industrials
AI Verdict
HII trades at a fair multiple for an 8% growth rate, and its government-backed moat makes those earnings expectations more reliable than most industrials.
Competitive Moat
HII is the sole builder of U.S. Navy nuclear-powered aircraft carriers and a primary builder of nuclear submarines, protected by long-term government contracts and high regulatory barriers. This defense contracting moat is reinforced by decades of specialized shipyard infrastructure and expertise that are nearly impossible for new entrants to replicate.
Summary
HII's exclusive position as the U.S. Navy's aircraft carrier builder is drawing attention as defense budgets rise.
Where It Stands
Shares are up 41.78% over the past year, trade at 19.6x next year's earnings (below the 20x industrials median), and the RSI of 30.6 signals oversold conditions.
Key Metrics
- RSI: 30.6 — Near Oversold
- Trailing P/E: 21.2x
- Forward P/E: 19.6x
- PEG Ratio: 1.89
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $12.9B
- Dividend Yield: 0.02%
- 1-Year Return: 41.78%
- 52-Week High: $460.00
- 52-Week Low: $215.05
Analyst Consensus
9 Buy · 8 Hold · 0 Sell (17 analysts)
Bull Case
With forward EPS growth expected at 8.0% and a forward P/E of 19.6x, you're paying a fair price for steady, contract-backed growth in a defensible niche.
Bear Case
If the P/E reverts from 19.6x to the sector median of 20x, upside is capped, and the oversold RSI of 30.6 could signal a pause after a 41.78% run.
Catalyst to Watch
Watch for new multi-year Navy contract awards or defense budget increases, as these directly impact HII's earnings visibility.