Stock Price & Analysis

HII stock is currently trading at $196.85 with mixed analyst sentiment and technical indicators suggesting caution. Hold HII stock as it faces headwinds from supply chain and labor challenges, but monitor for potential upside from defense spending trends.

Price Prediction for HII Stock in 2025

HII stock is predicted to reach $198-$207 in 2025, driven by positive news about shipbuilding incentives and increased defense spending. However, short-term technical indicators suggest a potential pullback to $170-$175 due to overbought conditions. Analysts remain mixed, with some lowering price targets amid supply chain challenges.

The S1 support level for HII Stock is $173.48 ,The R1 resistant level for HII Stock is $201.42.

As of the end of day on 2025-03-14, the price of HII Stock was $195.97.

The target price for HII Stock according to analyst rating is 186.25, with the highest price target at 235.00 and the lowest at 145.00. Analysts have a Hold rating on HII Stock overall.

The market cap of HII is $7.7B.

Analysis and Insights

Huntington Ingalls Industries (HII) appears to be reasonably valued based on current metrics and industry trends.

Valuation Metrics:

HII's valuation metrics suggest the stock is not overvalued. The forward P/E ratio of 14.93 is in line with industry averages, and the EV/EBITDA of 12.64 indicates a reasonable valuation relative to earnings. The price-to-sales ratio of 1.74 and price-to-book ratio of 2.79 are also within acceptable ranges for its sector.

Financial Performance:

The company has shown steady revenue growth, with total revenue increasing from $2.8 billion in Q1 2024 to $3.0 billion in Q4 2024. However, net income has been inconsistent, with a notable decline in Q3 2024. Gross margins remain stable at around 13%, while net margins have averaged 18% over the past year.

Market Sentiment and Analyst Ratings:

Recent news has been positive for HII, with a 12.3% stock price increase following President Trump's announcement of a new shipbuilding office and tax incentives. Additionally, increased defense spending by European nations, as urged by NATO, could further benefit HII. Analyst ratings are mixed, with a consensus "Hold" rating, but the mean price target of $198.45 suggests a potential upside of 17.6%.

Conclusion:

Based on the analysis, HII is not overvalued. The company's valuation metrics are reasonable, and it is well-positioned to benefit from increased defense spending. However, investors should monitor potential risks such as supply chain disruptions and labor challenges.

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. Its Mission Technologies segment develops integrated solutions that enable connected, all-domain force.

Price Prediction for HII Stock by 2030

HII stock is expected to reach $275-$300 by 2030.

• Reason: Strong defense sector growth, increased military spending, and HII's position as a leading shipbuilder.

HII has a total of 44000 employees.