Huntington Ingalls Industries (HII) Completed Harrisburg Sea Trials, Is The Stock Still A Bargain?

Huntington Ingalls Industries (HII) just cleared a technical milestone that matters to anyone tracking its defense exposure. The Ingalls Shipbuilding division completed builder sea trials on the first Flight II San Antonio class ship, Harrisburg.

For context, Huntington Ingalls Industries shares have slipped around 8% over the past week and are down about 17% year to date on a share price basis, even though the 5 year total shareholder return of roughly 69% still points to a stronger long run outcome.

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Huntington Ingalls Industries now trades after a double digit year to date pullback, despite fresh evidence of shipyard execution and earnings power. Does that reset tilt the risk reward toward buyers, or does it still argue for caution on valuation?

Most Popular Narrative: 19% Undervalued

Huntington Ingalls Industries last closed at $288.74, while the analyst consensus Narrative on Simply Wall St anchors fair value around $356.42. This frames the current pullback against a higher long run earnings and margin path under its model using an 8.56% discount rate.

The main thing that has to go right is sustaining planned throughput gains and workforce execution, so that higher Navy budgets, distributed shipbuilding, and automation investments translate into the targeted 9 to 10% shipbuilding margin profile. The current valuation implies the share price does not fully reflect the raised 2026 shipbuilding revenue and margin guidance, the long duration contract awards for submarines and carriers, and the expanding role of autonomous systems and Mission Technologies earnings in the Huntington Ingalls Industries mix.

See why 55 investors see Huntington Ingalls Industries as 19% undervalued.

Result: Fair Value of $356.42 (UNDERVALUED)

Still, the Huntington Ingalls Industries story can change quickly if carrier execution issues linger or if back-end loaded 2026 free cash flow falls short of guidance.

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

Next Steps

Sentiment around Huntington Ingalls Industries may look mixed on the surface. Move quickly, pull up the data, and pressure test the thesis for yourself by weighing the 6 key rewards and 1 important warning sign.

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