Founded in 1886, Huntington Ingalls Industries, Inc. (HII) is based in Newport News, Virginia. The company specializes in designing, building, overhauling, and repairing military ships within the United States. HII currently has a market capitalization of $8 billion and operates through three segments: Ingalls, Newport News, and Mission Technologies.

With its market cap firmly in the mid-cap classification—typically companies valued between $2 billion and $10 billion—HII exemplifies size and influence in the aerospace and defense sector. Its diverse offerings for the U.S. Navy significantly bolster its standing within the rapidly growing defense industry.

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HII is currently facing some difficulties, trading 30.1% below its 52-week high of $289.26, reached on April 4 of last year. However, despite these challenges, HII stock surged 7% over the past three months, outperforming the broader Nasdaq Composite, which fell 9.6% in the same timeframe.

Over the past year, HII shares have experienced a decline of 29.7%, in contrast to the Nasdaq’s 6.4% return. Additionally, HII stock has fallen 23.6% in the last six months, also underperforming the Nasdaq, which declined only 2.6% during that period.

Since the end of September, HII has traded below its 200-day moving average. However, it has maintained a position above its 50-day moving average since early March.

The company’s stock witnessed a significant drop of 18.3% following its Q4 earnings release on February 6. In this report, HII disclosed a 5.4% decrease in sales and service revenues, amounting to $3 billion, largely attributed to weaker performance in its Newport News Shipbuilding segment. Earnings per share (EPS) for HII reached $3.15, which fell short of Wall Street estimates by 4%.

In comparison, General Dynamics Corporation (GD), HII’s peer in the industry, has also seen declines. However, GD has performed better than HII, with its shares decreasing by 10.2% over the past six months and 6% over the last year.

According to analysts, HII stock holds a consensus rating of “Hold” among the 10 financial analysts following the company. Currently, HII’s stock price is 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 are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

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