From Yahoo Finance: 2025-05-17 04:32:00

Shares of Huntington Ingalls Industries have surged in 2025 as the Trump administration plans to boost U.S. military shipbuilding funding. The company anticipates over $50 billion in new contract awards in the next 20 months, increasing its order backlog. With robust fundamentals, the stock is poised for further growth.

Huntington Ingalls Industries is excelling in the stock market, delivering a 21% return year-to-date. As the largest U.S. military shipbuilder, the company is well-positioned to benefit from increased funding for domestic shipbuilding programs. Its diverse defense offerings, including advanced warships and autonomous systems, enhance its appeal as an investment.

President Trump’s focus on bolstering U.S. military strength benefits Huntington Ingalls Industries. The company anticipates significant contract awards in the next 20 months, adding to its already substantial order backlog. Despite a slight revenue decline in the first quarter, the company’s strong margins and growth outlook are positive indicators for investors.

Huntington Ingalls Industries’ recent acquisition of a new production site near Charleston is expected to boost capacity by 20%, setting the stage for substantial growth. With an attractive valuation compared to peers in the defense sector, the stock may be undervalued. Investors looking to capitalize on domestic manufacturing and defense themes should consider adding it to their portfolios.

Read more: 4 Reasons to Buy Huntington Ingalls Industries Stock Like There’s No Tomorrow