Sound Shore Management released its Q4 2025 investor letter, reporting SSHFX and SSHVX returns of 7.83% and 7.87%, respectively, outperforming the S&P 500 and Russell 1000 Value Index. The firm’s diverse investments in healthcare and other sectors drove its strong performance in an AI and tech-focused market, with a focus on undervalued assets and industry shifts.

Huntington Ingalls Industries, Inc. (NYSE:HII) was a standout performer in 2025, with stock closing at $418.78 per share on February 13, 2026. The largest US Naval shipbuilder, HII constructs warships for the Navy and Coast Guard. Sound Shore Management purchased HII when trading at 13 times earnings, leading to significant growth post-COVID challenges.

Huntington Ingalls Industries, Inc. (NYSE:HII) reported $12.5 billion in revenues in 2025, an 8.2% increase from 2024. While 39 hedge fund portfolios held HII at the end of Q3, some AI stocks offer greater upside potential with less downside risk. Investors looking for undervalued AI stocks with growth potential may find opportunities beyond HII.

Sound Shore Management highlighted Huntington Ingalls Industries, Inc. (NYSE:HII) in its Q4 2025 investor letter, emphasizing the company’s strong performance as a standout in 2025. With a focus on post-COVID challenges and growth potential in the US Navy’s fleet expansion, the firm believes HII is just beginning to reflect its growth potential.

For more insights on top defense stocks and hedge fund investor letters in Q4 2025, visit the provided links. Explore the best and worst Dow stocks for the next 12 months and unstoppable stocks that could double your money. This article is originally published on Insider Monkey.

Read more at Yahoo Finance.: Huntington Ingalls Industries (HII) is Unlocking Its Growth Potential