From Yahoo Finance: 2025-04-09 09:45:00

Huntington Ingalls Industries, Inc. (HII) has faced a stock decline due to deteriorating margins on fixed-price contracts and labor shortages. Despite this, the company remains confident in a margin recovery by 2026 through contract renegotiations and workforce expansion. HII also has a $48 billion backlog and focuses on unmanned underwater vehicles.

The company’s strategic positioning within the Navy’s vision of a 355-ship fleet provides long-term revenue visibility. Despite a recent stock price drop, management forecasts a potential free cash flow of $600 million post-2026, supporting a fair value of $287 per share. HII’s exposure to traditional and next-gen naval tech makes it a promising long-term investment.

Huntington Ingalls Industries, Inc. (HII) is not among the 30 Most Popular Stocks Among Hedge Funds, but 27 hedge funds held HII at the end of Q4 2024. While HII holds potential as an investment, there are AI stocks with higher return potential in a shorter timeframe. If you seek a promising AI stock trading at less than 5 times earnings, explore other options.

Read more: Huntington Ingalls Industries, Inc. (HII): A Bull Case Theory