Huntington Ingalls Industries (HII): Is the Defense Contractor Still Undervalued After Its Strong 2024 Rally?
Huntington Ingalls Industries (HII) has quietly pushed to a fresh high, with the stock up about 19% over the past 3 months and roughly 74% year to date, drawing renewed attention from defense investors.
See our latest analysis for Huntington Ingalls Industries.
That surge sits on top of an already strong run, with the latest share price at $326.72 and solid defense spending tailwinds helping deliver a powerful year to date share price return and a hefty multi year total shareholder return profile. This suggests momentum is still firmly building.
If Huntington Ingalls has you rethinking defense exposure, it might be a good moment to scan aerospace and defense stocks for other names riding similar demand trends.
With shares hovering near analysts’ targets yet still screening at a sizable intrinsic discount, the key question now is whether Huntington Ingalls remains mispriced value or if the market has already baked in years of growth.
Most Popular Narrative Narrative: 1.6% Undervalued
With Huntington Ingalls closing at $326.72 against a narrative fair value near $332, the story frames today’s price as only modestly below intrinsic value and leans heavily on long dated defense cash flows.
The analysts have a consensus price target of $285.8 for Huntington Ingalls Industries based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $324.0, and the most bearish reporting a price target of just $221.0.
Curious how modest growth forecasts, rising margins, and a deliberately lower future earnings multiple can still justify upside from here? The full narrative unpacks the earnings bridge, the revenue runway, and the discounted cash flow assumptions that quietly support this fair value call.
Result: Fair Value of $331.89 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering execution risk on large Navy programs and potential shifts in Pentagon priorities could quickly undermine both backlog visibility and the valuation case.
Find out about the key risks to this Huntington Ingalls Industries narrative.
Build Your Own Huntington Ingalls Industries Narrative
If you see the story differently or want to stress test the assumptions with your own numbers, you can build a custom view in just minutes: Do it your way.
A great starting point for your Huntington Ingalls Industries research is our analysis highlighting 4 key rewards and 2 important warning signs 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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