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 fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HII is 344.80 USD with a low forecast of 300.00 USD and a high forecast of 376.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 392.700
Low
300.00
Averages
344.80
High
376.00
Current: 392.700
Low
300.00
Averages
344.80
High
376.00
About HII
Huntington Ingalls Industries, Inc. is a global, all-domain defense provider. The Company delivers ships and all-domain solutions in service of the nation. It delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. It operates through three segments: Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News), and Mission Technologies. Through its Ingalls segment, the Company designs and constructs non-nuclear ships for the United States Navy and Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants, and national security cutters (NSC). The core business of its Newport News segment is designing and constructing nuclear-powered aircraft carriers and submarines, and the refueling and overhaul and the inactivation of nuclear-powered aircraft carriers. The Company’s Mission Technologies segment develops integrated solutions that enable connected, all-domain force.
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 Awards $95,700 in STEM Grants to Schools in Mississippi and Alabama
- Investment in STEM Education: HII's Ingalls Shipbuilding division awarded $95,700 in STEM grants to 22 schools and educational organizations across south Mississippi and Alabama, aiming to inspire students to explore careers related to shipbuilding and engineering by funding hands-on projects and technology upgrades, thereby laying the groundwork for future workforce development.
- Scope of Supported Projects: The funded projects encompass areas such as robotics, welding, and engineering, assisting students in acquiring essential skills through practical applications; Ingalls Shipbuilding President Brian Blanchette emphasized that STEM education is crucial for cultivating future innovators and problem solvers, directly impacting the sustainable growth of the shipbuilding industry.
- Grant Implementation Details: Each educator can receive up to $5,000 to implement science, technology, engineering, and math-based curricula, fostering creativity and skill development among students to ensure they are well-prepared for future careers.
- Beneficiary School Examples: For instance, a teacher from Creekbend Elementary expressed that the STEM grant will fund the purchase of robotic cars, enabling students in grades 2-6 to explore coding and engineering through hands-on learning, thereby enhancing their future competitiveness.
See More
Bank of America Upgrades Huntington Ingalls to Neutral Amid Stronger Shipbuilding Fundamentals
- Rating Upgrade: Bank of America upgraded Huntington Ingalls (HII) from Underperform to Neutral, reflecting improved fundamentals in the U.S. shipbuilding industry and increased Navy budgets that are expected to mitigate execution risks at the company's shipyards.
- Price Target Increase: Analyst Ronald Epstein raised the price target from $300 to $400, implying modest upside from recent levels, which reflects a higher valuation multiple tied to a strong macro backdrop for naval construction.
- Defense Budget Boost: The fiscal 2026 defense budget proposal includes $27.2 billion for 17 ships, with speculation that fiscal 2027 defense spending could exceed $1.2 trillion, positioning Huntington Ingalls to benefit from increased Navy procurement, particularly in upcoming contracts for submarines and frigates.
- Improving Execution Risks: While macro trends have improved, Huntington Ingalls still faces challenges such as labor shortages and supply chain constraints; management plans to boost shipyard throughput by 15% in 2026, with free cash flow projected to recover from $530 million in 2026 to $642 million in 2027.
See More
HII: BOFA Global Research Upgrades to Neutral from Underperform and Increases Price Target to $400 from $300
- Research Findings: A global research initiative has successfully raised the performance of a specific technology, enhancing its capabilities significantly.
- Price Increase: The objective price for this technology has been increased from $300 to $400, reflecting its improved performance and value.
See More
HII and Path Robotics to Sign MOU and Demonstrate Physical AI Innovations
- MOU Signing: HII and Path Robotics will hold a memorandum of understanding signing ceremony on February 17, marking a significant step in their collaboration in the field of physical AI manufacturing, which is expected to drive further advancements in intelligent manufacturing technologies.
- Media Event Details: The event will include a guided media tour showcasing Path Robotics' new physical AI innovation center along with live welding and assembly demonstrations, aimed at enhancing public awareness of physical AI applications in manufacturing while increasing brand visibility for both HII and Path Robotics.
- Executive Interaction Opportunity: Following the signing ceremony, media will have the chance to engage with Eric Chewning, HII's EVP of Maritime Systems & Corporate Strategy, and Andy Lonsberry, CEO of Path Robotics, to discuss the strategic collaboration between the two companies in the intelligent manufacturing sector.
- Industry Context: As America's largest shipbuilder, HII is committed to providing advanced unmanned systems for defense customers, while Path Robotics addresses labor shortages in manufacturing through its intelligent welding model, Obsidian™, making their partnership pivotal for technological innovation in the industry.
See More
Defense Stocks Surge in 2026 Amid Geopolitical Tensions
- Surge in Defense Spending: Global defense spending is projected to reach $2.6 trillion in 2026, reflecting an 8.1% increase from 2025, driven by heightened geopolitical uncertainties prompting nations to boost military budgets, thereby fostering overall growth in the defense sector.
- Strong Performance by Major Firms: Lockheed Martin, Northrop Grumman, and Huntington Ingalls Industries have all seen their stock prices rise over 20% in early 2026, with Lockheed Martin leading at a 26% increase, indicating strong market confidence and investment enthusiasm in the defense industry.
- Increased NATO Spending Goals: Under pressure from the Trump administration, NATO's defense spending target has been raised from 2% to 5% of GDP by 2035, prompting major economies like Germany to significantly ramp up defense investments, with Germany expected to meet this target by 2030, further driving growth in the global defense market.
- Surge in U.S. Arms Sales: The Trump administration recently approved massive arms sales to Israel and Saudi Arabia, totaling $6.67 billion and $9 billion respectively, primarily benefiting U.S. defense firms, highlighting that in an increasingly dangerous global security environment, the defense industry will continue to thrive from government spending and investments.
See More
HII: JP Morgan Increases Target Price to $388, Up from $342
- Price Increase Announcement: JPMorgan has raised its price target for a specific asset from $342 to $388.
- Market Implications: This adjustment reflects JPMorgan's updated outlook on the asset's performance and potential growth.
See More
HII Awards $95,700 in STEM Grants to Schools in Mississippi and Alabama
- Investment in STEM Education: HII's Ingalls Shipbuilding division awarded $95,700 in STEM grants to 22 schools and educational organizations across south Mississippi and Alabama, aiming to inspire students to explore careers related to shipbuilding and engineering by funding hands-on projects and technology upgrades, thereby laying the groundwork for future workforce development.
- Scope of Supported Projects: The funded projects encompass areas such as robotics, welding, and engineering, assisting students in acquiring essential skills through practical applications; Ingalls Shipbuilding President Brian Blanchette emphasized that STEM education is crucial for cultivating future innovators and problem solvers, directly impacting the sustainable growth of the shipbuilding industry.
- Grant Implementation Details: Each educator can receive up to $5,000 to implement science, technology, engineering, and math-based curricula, fostering creativity and skill development among students to ensure they are well-prepared for future careers.
- Beneficiary School Examples: For instance, a teacher from Creekbend Elementary expressed that the STEM grant will fund the purchase of robotic cars, enabling students in grades 2-6 to explore coding and engineering through hands-on learning, thereby enhancing their future competitiveness.
See More
Bank of America Upgrades Huntington Ingalls to Neutral Amid Stronger Shipbuilding Fundamentals
- Rating Upgrade: Bank of America upgraded Huntington Ingalls (HII) from Underperform to Neutral, reflecting improved fundamentals in the U.S. shipbuilding industry and increased Navy budgets that are expected to mitigate execution risks at the company's shipyards.
- Price Target Increase: Analyst Ronald Epstein raised the price target from $300 to $400, implying modest upside from recent levels, which reflects a higher valuation multiple tied to a strong macro backdrop for naval construction.
- Defense Budget Boost: The fiscal 2026 defense budget proposal includes $27.2 billion for 17 ships, with speculation that fiscal 2027 defense spending could exceed $1.2 trillion, positioning Huntington Ingalls to benefit from increased Navy procurement, particularly in upcoming contracts for submarines and frigates.
- Improving Execution Risks: While macro trends have improved, Huntington Ingalls still faces challenges such as labor shortages and supply chain constraints; management plans to boost shipyard throughput by 15% in 2026, with free cash flow projected to recover from $530 million in 2026 to $642 million in 2027.
See More
HII: BOFA Global Research Upgrades to Neutral from Underperform and Increases Price Target to $400 from $300
- Research Findings: A global research initiative has successfully raised the performance of a specific technology, enhancing its capabilities significantly.
- Price Increase: The objective price for this technology has been increased from $300 to $400, reflecting its improved performance and value.
See More
HII and Path Robotics to Sign MOU and Demonstrate Physical AI Innovations
- MOU Signing: HII and Path Robotics will hold a memorandum of understanding signing ceremony on February 17, marking a significant step in their collaboration in the field of physical AI manufacturing, which is expected to drive further advancements in intelligent manufacturing technologies.
- Media Event Details: The event will include a guided media tour showcasing Path Robotics' new physical AI innovation center along with live welding and assembly demonstrations, aimed at enhancing public awareness of physical AI applications in manufacturing while increasing brand visibility for both HII and Path Robotics.
- Executive Interaction Opportunity: Following the signing ceremony, media will have the chance to engage with Eric Chewning, HII's EVP of Maritime Systems & Corporate Strategy, and Andy Lonsberry, CEO of Path Robotics, to discuss the strategic collaboration between the two companies in the intelligent manufacturing sector.
- Industry Context: As America's largest shipbuilder, HII is committed to providing advanced unmanned systems for defense customers, while Path Robotics addresses labor shortages in manufacturing through its intelligent welding model, Obsidian™, making their partnership pivotal for technological innovation in the industry.
See More
Defense Stocks Surge in 2026 Amid Geopolitical Tensions
- Surge in Defense Spending: Global defense spending is projected to reach $2.6 trillion in 2026, reflecting an 8.1% increase from 2025, driven by heightened geopolitical uncertainties prompting nations to boost military budgets, thereby fostering overall growth in the defense sector.
- Strong Performance by Major Firms: Lockheed Martin, Northrop Grumman, and Huntington Ingalls Industries have all seen their stock prices rise over 20% in early 2026, with Lockheed Martin leading at a 26% increase, indicating strong market confidence and investment enthusiasm in the defense industry.
- Increased NATO Spending Goals: Under pressure from the Trump administration, NATO's defense spending target has been raised from 2% to 5% of GDP by 2035, prompting major economies like Germany to significantly ramp up defense investments, with Germany expected to meet this target by 2030, further driving growth in the global defense market.
- Surge in U.S. Arms Sales: The Trump administration recently approved massive arms sales to Israel and Saudi Arabia, totaling $6.67 billion and $9 billion respectively, primarily benefiting U.S. defense firms, highlighting that in an increasingly dangerous global security environment, the defense industry will continue to thrive from government spending and investments.
See More
HII: JP Morgan Increases Target Price to $388, Up from $342
- Price Increase Announcement: JPMorgan has raised its price target for a specific asset from $342 to $388.
- Market Implications: This adjustment reflects JPMorgan's updated outlook on the asset's performance and potential growth.
See More
