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Huntington Ingalls Industries, Inc. (HII) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$396.04

Change

+7.22%

Market Cap

$15.54B

Avg Volume

536.7K

Company Overview

Huntington Ingalls Industries, Inc. (HII) specializes in designing, building, overhauling, and repairing military ships for the U.S. Armed Forces. Their product line includes both non-nuclear vessels like amphibious assault ships and high-profile nuclear-powered aircraft carriers and submarines. Key customers include the U.S. Navy and the U.S. Coast Guard, which rely on HII for crucial naval systems and support services, including maintenance and modernization of nuclear ships.

HII is a market leader in the defense contracting space, largely due to its extensive history and technical expertise. They face competition from major players like General Dynamics and Lockheed Martin, who also provide shipbuilding and defense products. The complexity of defense contracts and the lengthy approval processes can pose threats to agility in this market. However, HII’s focus on advanced naval nuclear capabilities and cutting-edge technologies like artificial intelligence gives them a competitive edge.

Currently, HII is in a growth phase, spurred by increased defense budgets and a rising demand for modern naval capabilities. Recent milestones include contract wins for new shipbuilding projects and upgrades to existing fleets, which enhance their revenue outlook. The company is also actively investing in advanced technologies, positioning itself to capture new opportunities in the defense sector.

Key Financials

Market Cap

$15.54B

Revenue

$12.48B

EBITDA

$1.13B

Gross Margin

12.7%

Profit Margin

4.8%

Revenue Growth

15.7%

Total Cash

$774.00M

Total Debt

$2.92B

Free Cash Flow

$690.00M

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

25.72

Forward P/E

19.40

Beta

N/A

52-Week High

$436.14

52-Week Low

$159.41

EPS

$15.40

50-Day Avg

$363.58

200-Day Avg

$287.95

Price/Book

3.06

Technical Analysis

Over the past 52 weeks, Huntington Ingalls Industries, Inc. (HII) has exhibited a strong upward trend, culminating in a significant price increase of 141.9%, with the current price at $396.04. Key support is established at approximately $150, while resistance is identified around the $400 level, where the price has recently oscillated. The price chart shows a consistent ascending channel, indicating bullish momentum, particularly evident from the gradual upward slope of the 52-week trend lines. In recent weeks, HII has shown robust momentum, maintaining its position near the upper resistance level. The current price of $396.04 is close to the 52-week high of around $397.77, suggesting a strong bullish sentiment and potential for further upward movement if it breaks past this resistance level.

Recent News and Developments

Here are the latest news and developments for Huntington Ingalls Industries, Inc

(HII) stock in the past week:

Market Update

### HII Beats Q4 2025 Earnings and Revenue Estimates

Market Update

Huntington Ingalls Industries announced strong fourth-quarter 2025 financial results on February 5, 2026, surpassing analyst expectations for both earnings per share (EPS) and revenue. The company reported an EPS of $4.04, exceeding the consensus estimate of $3.72, and quarterly revenue rose 15.7% year-over-year to $3.48 billion, also above analyst estimates of $3.09 billion. Despite the positive

Market Sentiment and Analyst Recommendations

Bull Case

HII just proved it can execute at scale, beating Q4 earnings by 8.6% on EPS and crushing revenue estimates by 12.6%. The 15.7% revenue growth is real, not guidance inflation, and the company is guiding for $12.7-$13.1 billion in 2026 revenue, which keeps the momentum alive. The $25.4 billion ATSP5 contract win in January gives HII a decade-long revenue stream in microelectronics, a high-margin business that diversifies beyond shipbuilding. At a P/E of 25.72, the stock trades at a modest premium for a defense contractor with government contracts and recurring revenue visibility. The 141.9% gain over 52 weeks reflects genuine operational improvement, not hype. The government shutdown resolution removes uncertainty and unlocks spending across the DoD. If HII can sustain 5.5-6.5% operating margins through 2026, the stock has room to run toward the $450 analyst target.

Bear Case

The stock is sitting right at the $400 resistance level after a 141.9% tear, which means the easy gains are priced in. HII warned that Q1 2026 will see negative free cash flow as working capital benefits unwind, signaling near-term cash flow deterioration despite strong earnings. The P/E of 25.72 is expensive for a defense contractor with 5.5-6.5% operating margins, leaving little margin for error if guidance misses. Analyst sentiment is explicitly mixed post-earnings, with the consensus noting the 2026 guidance doesn’t clear the “higher bar” the stock has set. The stock is trading within 1% of its 52-week high with limited upside cushion, and the analyst target range of $292-$450 shows wide disagreement on fair value. Execution risk is real: shipbuilding is capital-intensive and contract delays could pressure margins. A pullback toward the $300-$350 range is plausible if the company stumbles on 2026 delivery schedules.

What to Watch

Monitor Q1 2026 free cash flow results closely when reported in April or May, as management flagged negative FCF this quarter. Watch for any contract delays or cost overruns on shipbuilding programs, which would validate bear thesis on execution risk. Track the ramp-up of the ATSP5 microelectronics contract revenue contribution in 2026 earnings calls to confirm it’s a meaningful margin driver. Pay attention to whether HII can hold the 5.5-6.5% operating margin guidance through the year or if margins compress under working capital pressure. If the stock breaks above $400 resistance with volume, the next target is $436, the previous 52-week high. Conversely, if it rolls over and closes below $380 for two consecutive weeks, that signals institutional selling and a potential test of the $350 support level. Keep tabs on defense spending appropriations for fiscal 2027 starting in late 2026, as multi-year budget clarity will determine long-term contract flow.

Analyst Consensus

BUY

Based on 10 analyst opinions

Low Target

$292.00

Mean Target

$381.20

High Target

$450.00

Earnings and Financial Data

Sector

Industrials

Industry

Aerospace & Defense

Employees

N/A

Earnings & Dividends

Next Earnings

Apr 30, 2026

EPS (Trailing)

$15.40

Dividend Yield

149.0%

Payout Ratio

35.3%

Frequently Asked Questions

Is HII a good stock to buy?

Yes, analysts recommend HII as a “BUY” with a target price of $381.20. Currently trading at $396.04, it slightly exceeds this target, but its strong position in the aerospace and defense sector justifies the investment.

What is HII’s price target?

Analysts have set a price target of $381.20 for HII. This target indicates a potential downside from the current price of $396.04, suggesting investors should proceed cautiously.

Does HII pay a dividend?

Yes, HII has an impressive dividend yield of 149.0%. This indicates strong cash generation and a commitment to returning value to shareholders, which can be attractive for income-focused investors.

What is HII’s P/E ratio?

HII has a P/E ratio of 25.72 and a forward P/E of 19.40. While the current P/E suggests the stock is slightly overvalued relative to earnings, the forward P/E points to potential growth in profitability.

What is HII’s market cap?

HII has a market cap of $15.54 billion. This positions it as a significant player in the aerospace and defense sector, providing stability and resources for future growth.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.