Founded in 1886, the Newport News, Virginia-based Huntington Ingalls Industries, Inc. (HII) designs, builds, overhauls, and repairs military ships in the United States. With a market cap of $8 billion, the company operates through Ingalls, Newport News, and Mission Technologies segments.
Companies with a market capitalization between $2 billion and $10 billion are generally classified as ‘mid-cap stocks,” and HII perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the aerospace and defense industry. The company benefits from a wide range of offerings for the U.S. Navy, strengthening its presence in the booming defense sector.
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However, HII has faced struggles and is currently trading 30.1% below its 52-week high of $289.26, recorded on Apr. 4, last year. On the positive side, HII stock surged 7% over the past three months, surpassing the broader Nasdaq Composite’s ($NASX) fall of 9.6% over the same time frame.
Shares of HII have declined 29.7% over the past 52 weeks, underperforming $NASX's 6.4% return over the last year. Moreover, over the past six months, HII shares have declined 23.6%, underperforming $NASX’s 2.6% fall.
HII has been trading under its 200-day moving average since September end. However, the stock has risen above its 50-day moving average since early March.
HII shares have dropped a whopping 18.3% following its Q4 earnings release on Feb. 6. The company reported a 5.4% decline in its sales and service revenues, which amounted to $3 billion. The fall was mainly caused by weak performance at the company’s Newport News Shipbuilding segment. HII’s EPS amounted to $3.15, falling short of Wall Street estimates by 4%.
Its peer, General Dynamics Corporation (GD) has also observed a decline over the past year. However, GD has outperformed HII, with its shares declining 10.2% over the past six months and 6% over the past 52 weeks.
Among the 10 analysts covering the HII stock, the consensus rating is a “Hold.” The stock is currently standing above its mean price target of $198.45.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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