Wednesday's Underperforming Sectors: Defense, Home Furnishings, and Improvement Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy HII?
Source: NASDAQ.COM
Defense Sector Performance: On Wednesday, defense shares fell by approximately 2.9%, with Kratos Defense & Security Solutions dropping 13.6% and Huntington Ingalls Industries declining 2.1%.
Home Furnishings & Improvement Sector: This sector also lagged, down about 2.4%, primarily due to American Woodmark's 13.7% drop and MasterBrand's 12.8% decline.
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Analyst Views on HII
Wall Street analysts forecast HII stock price to fall
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 443.000
Low
300.00
Averages
344.80
High
376.00
Current: 443.000
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.
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See More
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See More
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- Negotiation Context: The third round of nuclear talks between the U.S. and Iran commenced on February 18, 2025, in Geneva, with Iran under immense pressure to reach an agreement on the nuclear deal to curb its nuclear and ballistic missile development programs.
- Military Threat: The U.S. has amassed a significant military presence in the Middle East, with President Trump warning that “bad things” would happen if Iran fails to agree to a new nuclear deal, heightening the urgency of the negotiations.
- Iran's Position: Iranian Foreign Minister Abbas Araghchi stated that Iran is showing flexibility in negotiations, emphasizing its right to use nuclear energy for peaceful purposes, while refusing to halt uranium enrichment, which it claims is non-negotiable.
- Economic Pressure: Facing economic sanctions and domestic protests, analysts suggest that while the negotiation outlook remains uncertain, imminent U.S. military action is not expected to pose an immediate threat in the short term.
See More
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- Contract Delays Impact: Bipartisan lawmakers are urging the Navy to expedite contracts for at least 15 submarines, warning that further delays could damage the specialized industrial base that builds these vessels, potentially undermining national defense capabilities.
- Significant Contract Value: Congress has previously approved contracts for up to 13 Virginia-class attack submarines and five Columbia-class ballistic missile submarines, with a total estimated value of around $100 billion, to be constructed by General Dynamics (GD) and Huntington Ingalls Industries (HII).
- Supply Chain Stability: Representative Rob Wittman from Virginia emphasized that awarding these contracts would help stabilize suppliers, many of whom produce unique components without backup sources, ensuring the reliability of the defense supply chain.
- Production Goals: The Navy aims to ramp up production to one Columbia-class and two Virginia-class submarines annually by 2028, making the timely signing of contracts crucial for achieving this modernization objective.
See More
3 Factors Contributing to the Decline of L3 Harris and Other Defense Stocks
- Defense Stocks Performance: Defense stocks, including L3Harris Technologies, Lockheed Martin, and Northrop Grumman, have been experiencing significant gains recently.
- Market Interruption: Wednesday marked a notable interruption in the rally of these defense stocks, indicating potential volatility in the market.
See More
Defense Stocks Face Decline: Here Are Three Factors Behind It.
- Current Trends: Defense stocks are experiencing significant growth, indicating a strong market interest.
- Market Volatility: Despite the upward trend, these rallies are subject to interruptions, reflecting the inherent volatility in the defense sector.
See More
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- Defense Stocks Surge: GE Aerospace, Huntington Ingalls, Lockheed Martin, Northrop Grumman, and RTX have all reached new all-time highs, with Lockheed Martin rising 14% in the past month, reflecting strong market confidence in increased defense spending.
- Energy Sector Rally: Energy stocks like APA Corp, Baker Hughes, and ConocoPhillips have hit new highs, with Baker Hughes up 37% in 2026, indicating optimistic expectations for a recovery in energy demand.
- Microsoft Insider Buying: Microsoft director John Stanton purchased 5,000 shares for about $2 million, marking one of the largest insider buys in nearly 20 years, despite the stock being down 28% since July 31, suggesting insider confidence in a future rebound.
- Economic Data Expectations: The U.S. GDP is expected to grow by 2.5% in the fourth quarter, with personal income data also due, as economists forecast a 0.2% increase, which could influence market sentiment and lead to stock market volatility.
See More
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- Welding Efficiency Boost: HII signed a memorandum of understanding with Path Robotics to integrate Path's physical AI welding technology into shipbuilding operations, anticipating a 15% increase in ship production efficiency in 2026, thereby accelerating U.S. Navy shipbuilding processes.
- Innovative Technology Collaboration: The partnership will focus on developing autonomous welding capabilities, training a workforce to extend automation, and establishing an intellectual property framework for physical AI welding systems, aiming to enhance automation levels and production capacity in the shipbuilding industry.
- Addressing Labor Shortages: Path's Obsidian™ welding model can adapt in real-time to variations in complex shipbuilding environments, tackling challenges faced by traditional welding automation, thereby strengthening HII's technological capabilities and meeting the growing demands of the Navy.
- National Security Strategy: HII, as the largest military shipbuilder in the U.S., collaborates with Path to not only enhance the automation of welding processes but also to advance national security objectives, ensuring naval manufacturing capabilities for decades to come.
See More
