Northrop Puckett
Contrarian, macro

Huntington-Ingalls Is Up 58% Since We Wrote About It In June, And It's Still Attractive

Back in June, we wrote an article about submarine and aircraft carrier-maker Huntington-Ingalls (NYSE:HII) that argued that the stock price would rise on the company's improving margins, and thus, higher EPS. We did not foresee a 58% run-up over 7 months, but after a continuing review, we believe the stock is still attractively valued.

In that last column, we noted that while revenues wouldn't improve dramatically, the EPS would. In the November earnings announcement, revenue came in right at analyst expectations, up about 4%. But the company blew out analyst EPS estimates of .82 per share with $1.36 per share. A large part of the reason for the EPS beat was because of income from insurance claims, and...

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