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    Is Huntington Ingalls (HII) Still Undervalued After a 72% Year-to-Date Surge?

    Simply Wall St·12/19/2025 14:29:12
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    Huntington Ingalls Industries (HII) has quietly rewarded patient investors this year, with the stock up roughly 72% year to date and about 76% over the past year, far outpacing the broader market.

    See our latest analysis for Huntington Ingalls Industries.

    That surge in momentum has come as investors warm to Huntington Ingalls Industries revenue and earnings growth profile, with a roughly 17 percent 90 day share price return contributing to a powerful one year total shareholder return above 75 percent.

    If Huntington Ingalls Industries strong run has you rethinking the defense space, it is worth exploring other opportunities across aerospace and defense stocks to see what else is gaining traction.

    With shares hovering near record highs and trading only modestly below Wall Street targets despite solid growth, the key question now is simple: is Huntington Ingalls Industries still undervalued, or is future growth already fully priced in?

    Most Popular Narrative: 2.8% Undervalued

    Compared with the last close at $322.63, the most followed narrative sees Huntington Ingalls Industries worth about $331.89, implying modest upside from here.

    The revitalization and expansion of the U.S. maritime industrial base, supported by increased outsourcing, supply chain stabilization efforts, and targeted workforce investments (notably effective wage increases and hiring), are enabling HII to execute a 20% throughput improvement plan, directly translating into enhanced cash flow and improved earnings consistency.

    Read the complete narrative.

    Curious how a steady growth outlook, rising margins, and a lower future earnings multiple can still point to upside from today’s price? The full narrative unpacks the revenue runway, profit lift, and valuation reset driving that fair value estimate, and the numbers behind it may surprise you.

    Result: Fair Value of $331.89 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, persistent supply chain bottlenecks and delays on key submarine and carrier programs could quickly erode margin gains and undermine that upside case.

    Find out about the key risks to this Huntington Ingalls Industries narrative.

    Build Your Own Huntington Ingalls Industries Narrative

    If you are not fully convinced by this view, or would rather dig into the numbers yourself, you can build a personalized narrative in just a few minutes: Do it your way.

    A great starting point for your Huntington Ingalls Industries research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.