Three Overlooked ETFs That May Thrive in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 10 2026
0mins
Source: Marketbeat
ETFs in 2025: The year 2025 is projected to be significant for exchange-traded funds (ETFs), with an expected inflow of about $1.5 trillion, and the ETF space shows no signs of losing its appeal to investors in 2026.
Focus on Wide Moat ETFs: The Wide Moat ETF (MOAT) targets companies with competitive advantages, focusing on large-cap stocks that are expected to perform well due to their market value and resilience against competitors.
Active Management Strategies: The WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE) combines gold futures and large-cap U.S. equities, appealing to investors seeking defensive qualities and a smart way to invest in precious metals.
Emerging Fund GRNJ: The newly launched Fundstrat Granny Shots U.S. Small- & Mid-Cap ETF (GRNJ) utilizes unique metrics to evaluate companies, targeting millennial consumers and showing promising early returns despite its higher expense ratio.
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Analyst Views on HII
Wall Street analysts forecast HII stock price to rise
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 278.970
Low
300.00
Averages
344.80
High
376.00
Current: 278.970
Low
300.00
Averages
344.80
High
376.00
About HII
Huntington Ingalls Industries, Inc. is a global, all-domain defense partner, building and delivering naval ships and technologies. Its segments include Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News) and Mission Technologies. Ingalls segment includes its non-nuclear ship design, construction, repair, and maintenance businesses. Newport News segment includes all of its nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses. Mission Technologies segment provides a range of services and products, including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance systems and operations; the application of artificial intelligence and machine learning to battlefield decisions; defense and offensive cyberspace strategies and electronic warfare; unmanned autonomous systems; live, virtual, and constructive training solutions; platform modernization, and critical nuclear operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
HII Begins Construction of New Destroyer USS John F. Lehman (DDG 137)
- Construction Start: HII's Ingalls Shipbuilding division officially commenced fabrication of the USS John F. Lehman (DDG 137) on July 1, 2026, marking the beginning of the Navy's newest Flight III Arleigh Burke-class destroyer, reflecting the company's ongoing commitment to defense investments.
- Distributed Production Model: By shifting the fabrication of major structural units from Pascagoula to six partner yards across Texas, Louisiana, Mississippi, and Florida, HII's distributed shipbuilding model significantly enhances production capacity, ensuring efficient supply chain management.
- Technological Upgrade: As the seventh Flight III destroyer, DDG 137 features the advanced AN/SPY-6(V)1 radar system and Aegis Baseline 10 combat system, designed to counter evolving threats well into the 21st century, thereby enhancing the Navy's operational capabilities.
- Future Plans: HII plans to outsource over 2.5 million hours of shipbuilding work in 2026, driving work to qualified yards nationwide, which will further strengthen the resilience of the long-term industrial base and ensure the ability to meet the Navy's demand for high-performance vessels.
See More
Investment Comparison: Huntington Ingalls vs. Lockheed Martin
- Revenue Growth Comparison: Huntington Ingalls reported nearly $12.5 billion in revenue for fiscal 2025, reflecting an 8.2% year-over-year increase, showcasing its strong position in military shipbuilding, although 81% of its revenue comes from the U.S. Navy, indicating significant customer concentration risk.
- Profitability Analysis: The company achieved a net income of approximately $605 million in 2025, resulting in a net margin of about 4.8%, which, while lower than competitors, is supported by a free cash flow of $794 million, providing a buffer for future investments.
- Debt Level Assessment: Huntington's debt-to-equity ratio stands at 0.6, indicating a relatively stable financial position, whereas Lockheed's ratio is 3.2, suggesting higher financial leverage risk that could impact long-term stability.
- Market Competition and Risks: Huntington faces intense competition from other shipbuilders like General Dynamics and relies heavily on U.S. Navy funding, making it vulnerable to any shifts in government spending priorities that could significantly affect its operations.
See More
Investment Comparison: Huntington Ingalls vs. Lockheed Martin
- Huntington Ingalls Performance: In fiscal 2025, Huntington Ingalls reported nearly $12.5 billion in revenue, an 8.2% increase year-over-year, with a net income of approximately $605 million and a net margin of 4.8%, reflecting its solid position in military shipbuilding.
- Lockheed Martin Financials: During the same year, Lockheed Martin achieved nearly $75.1 billion in revenue, growing by 5.7%, with a net income of around $5 billion and a net margin of 6.7%, showcasing its strength in aerospace and defense technology.
- Risk Assessment: Huntington Ingalls faces risks due to its reliance on U.S. Navy funding, while Lockheed is heavily dependent on the F-35 program, with both companies needing to manage the implications of customer concentration.
- Valuation Comparison: Huntington Ingalls has a forward P/E ratio of 17.2, lower than Lockheed's 18.1, and a P/S ratio of 0.9, indicating a relatively attractive valuation that may appeal to investors.
See More
Investment Comparison: Huntington Ingalls vs. Lockheed Martin
- Huntington Ingalls Financial Performance: In fiscal 2025, Huntington Ingalls reported nearly $12.5 billion in revenue, an 8.2% year-over-year increase, with a net income of approximately $605 million and a net margin of 4.8%, indicating robust growth in military shipbuilding.
- Lockheed Martin Market Position: During the same year, Lockheed Martin achieved revenue of nearly $75.1 billion, reflecting a growth of 5.7%, with a net income of about $5 billion and a net margin of 6.7%, further solidifying its leadership in aerospace and defense technology.
- Risk Analysis: Huntington Ingalls faces significant risks due to its reliance on U.S. Navy funding, leading to customer concentration risk, while Lockheed is heavily impacted by changes in defense budgets, particularly concerning the high-stakes F-35 program, which could result in delivery delays and increased costs.
- Valuation Comparison: Huntington Ingalls has a forward P/E of 17.2 and a P/S ratio of 0.9, making it appear cheaper compared to Lockheed Martin's 18.1 and 1.7, attracting investor interest due to its growth potential.
See More
HII and Navy Celebrate Opening of New Facility
- Facility Opening: HII and the U.S. Navy celebrated the opening of a new facility at Newport News Shipbuilding, which spans approximately 80,000 square feet and is dedicated to enhancing the work environment for sailors and shipbuilders during the refueling and complex overhaul (RCOH) of nuclear-powered aircraft carriers.
- Teamwork Example: NNS President Kari Wilkinson highlighted that the facility exemplifies what teamwork can achieve, showcasing the tenacity with which the project was envisioned, pursued, and executed, thereby reinforcing the commitment to the well-being of sailors and shipbuilders.
- Support for Navy Vision: Vice Chief of Naval Operations Adm. James Kilby noted that the facility directly supports the Navy's 'Sailors First' vision, aiming to provide sailors and shipyard partners with a dedicated, modern space that enhances their well-being and warfighting readiness.
- Convenient Location: The new facility is strategically located mid-yard at NNS, conveniently positioned between the dry dock and outfitting pier that support RCOH work, thereby optimizing workflow and improving service quality.
See More
Mixed Market Close: Tech Stocks Decline Amid Leadership Changes
- Tech Stock Decline: Alphabet's stock fell over 5% following the announcement of Google DeepMind VP Jumper's departure, leading to a broader decline in major tech stocks, which may heighten investor uncertainty regarding the tech sector's future performance.
- Oil Price Volatility: Oil prices initially surged over 2% after Iran threatened to close the Strait of Hormuz, but later retreated due to reported progress in peace talks with the US, highlighting the direct impact of geopolitical tensions on market dynamics and prompting investors to reassess energy sector risks.
- Market Expectation Shift: The market is currently pricing in a 39% chance of a 25 basis point rate hike at the upcoming FOMC meeting, reflecting a cautious investor sentiment towards future monetary policy, which could influence market liquidity and investment strategies.
- Overseas Market Performance: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan's Nikkei 225 rising by 0.29% and 1.55% respectively, indicating a divergence in global market trends that may provide some support for the US market.
See More
HII Begins Construction of New Destroyer USS John F. Lehman (DDG 137)
- Construction Start: HII's Ingalls Shipbuilding division officially commenced fabrication of the USS John F. Lehman (DDG 137) on July 1, 2026, marking the beginning of the Navy's newest Flight III Arleigh Burke-class destroyer, reflecting the company's ongoing commitment to defense investments.
- Distributed Production Model: By shifting the fabrication of major structural units from Pascagoula to six partner yards across Texas, Louisiana, Mississippi, and Florida, HII's distributed shipbuilding model significantly enhances production capacity, ensuring efficient supply chain management.
- Technological Upgrade: As the seventh Flight III destroyer, DDG 137 features the advanced AN/SPY-6(V)1 radar system and Aegis Baseline 10 combat system, designed to counter evolving threats well into the 21st century, thereby enhancing the Navy's operational capabilities.
- Future Plans: HII plans to outsource over 2.5 million hours of shipbuilding work in 2026, driving work to qualified yards nationwide, which will further strengthen the resilience of the long-term industrial base and ensure the ability to meet the Navy's demand for high-performance vessels.
See More
Investment Comparison: Huntington Ingalls vs. Lockheed Martin
- Revenue Growth Comparison: Huntington Ingalls reported nearly $12.5 billion in revenue for fiscal 2025, reflecting an 8.2% year-over-year increase, showcasing its strong position in military shipbuilding, although 81% of its revenue comes from the U.S. Navy, indicating significant customer concentration risk.
- Profitability Analysis: The company achieved a net income of approximately $605 million in 2025, resulting in a net margin of about 4.8%, which, while lower than competitors, is supported by a free cash flow of $794 million, providing a buffer for future investments.
- Debt Level Assessment: Huntington's debt-to-equity ratio stands at 0.6, indicating a relatively stable financial position, whereas Lockheed's ratio is 3.2, suggesting higher financial leverage risk that could impact long-term stability.
- Market Competition and Risks: Huntington faces intense competition from other shipbuilders like General Dynamics and relies heavily on U.S. Navy funding, making it vulnerable to any shifts in government spending priorities that could significantly affect its operations.
See More
Investment Comparison: Huntington Ingalls vs. Lockheed Martin
- Huntington Ingalls Performance: In fiscal 2025, Huntington Ingalls reported nearly $12.5 billion in revenue, an 8.2% increase year-over-year, with a net income of approximately $605 million and a net margin of 4.8%, reflecting its solid position in military shipbuilding.
- Lockheed Martin Financials: During the same year, Lockheed Martin achieved nearly $75.1 billion in revenue, growing by 5.7%, with a net income of around $5 billion and a net margin of 6.7%, showcasing its strength in aerospace and defense technology.
- Risk Assessment: Huntington Ingalls faces risks due to its reliance on U.S. Navy funding, while Lockheed is heavily dependent on the F-35 program, with both companies needing to manage the implications of customer concentration.
- Valuation Comparison: Huntington Ingalls has a forward P/E ratio of 17.2, lower than Lockheed's 18.1, and a P/S ratio of 0.9, indicating a relatively attractive valuation that may appeal to investors.
See More
Investment Comparison: Huntington Ingalls vs. Lockheed Martin
- Huntington Ingalls Financial Performance: In fiscal 2025, Huntington Ingalls reported nearly $12.5 billion in revenue, an 8.2% year-over-year increase, with a net income of approximately $605 million and a net margin of 4.8%, indicating robust growth in military shipbuilding.
- Lockheed Martin Market Position: During the same year, Lockheed Martin achieved revenue of nearly $75.1 billion, reflecting a growth of 5.7%, with a net income of about $5 billion and a net margin of 6.7%, further solidifying its leadership in aerospace and defense technology.
- Risk Analysis: Huntington Ingalls faces significant risks due to its reliance on U.S. Navy funding, leading to customer concentration risk, while Lockheed is heavily impacted by changes in defense budgets, particularly concerning the high-stakes F-35 program, which could result in delivery delays and increased costs.
- Valuation Comparison: Huntington Ingalls has a forward P/E of 17.2 and a P/S ratio of 0.9, making it appear cheaper compared to Lockheed Martin's 18.1 and 1.7, attracting investor interest due to its growth potential.
See More
HII and Navy Celebrate Opening of New Facility
- Facility Opening: HII and the U.S. Navy celebrated the opening of a new facility at Newport News Shipbuilding, which spans approximately 80,000 square feet and is dedicated to enhancing the work environment for sailors and shipbuilders during the refueling and complex overhaul (RCOH) of nuclear-powered aircraft carriers.
- Teamwork Example: NNS President Kari Wilkinson highlighted that the facility exemplifies what teamwork can achieve, showcasing the tenacity with which the project was envisioned, pursued, and executed, thereby reinforcing the commitment to the well-being of sailors and shipbuilders.
- Support for Navy Vision: Vice Chief of Naval Operations Adm. James Kilby noted that the facility directly supports the Navy's 'Sailors First' vision, aiming to provide sailors and shipyard partners with a dedicated, modern space that enhances their well-being and warfighting readiness.
- Convenient Location: The new facility is strategically located mid-yard at NNS, conveniently positioned between the dry dock and outfitting pier that support RCOH work, thereby optimizing workflow and improving service quality.
See More
Mixed Market Close: Tech Stocks Decline Amid Leadership Changes
- Tech Stock Decline: Alphabet's stock fell over 5% following the announcement of Google DeepMind VP Jumper's departure, leading to a broader decline in major tech stocks, which may heighten investor uncertainty regarding the tech sector's future performance.
- Oil Price Volatility: Oil prices initially surged over 2% after Iran threatened to close the Strait of Hormuz, but later retreated due to reported progress in peace talks with the US, highlighting the direct impact of geopolitical tensions on market dynamics and prompting investors to reassess energy sector risks.
- Market Expectation Shift: The market is currently pricing in a 39% chance of a 25 basis point rate hike at the upcoming FOMC meeting, reflecting a cautious investor sentiment towards future monetary policy, which could influence market liquidity and investment strategies.
- Overseas Market Performance: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan's Nikkei 225 rising by 0.29% and 1.55% respectively, indicating a divergence in global market trends that may provide some support for the US market.
See More
