Huntington Ingalls Stock: The Bear Case Is Showing Cracks, Initiating With A Buy

Dilantha De Silva
12.3K Followers
(12min)

Summary

  • Huntington Ingalls stock has gained momentum in the last few trading sessions, aided by policy support and a double upgrade by Goldman Sachs.
  • Tackling operating margin pressures will be key to an expansion in Huntington Ingalls' valuation multiples. Encouraging signs have appeared on the horizon.
  • A policy implementation lag has to be expected, and investors should also keep a close eye on overall defense budget growth or the lack thereof.
  • The company ended 2024 with a total backlog of $48.7 billion, which is a noteworthy amount given that it recorded revenue of $11.5 billion for 2024.
USS John F Kennedy Under Construction

Greg Meland

President Trump's second term has already been quite an interesting one for stock investors with policy changes and tariff announcements leading to wild swings in stock prices. In the last three trading sessions, industrial giant Huntington Ingalls Industries, Inc. (

This article was written by

12.3K Followers
Dilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and an Associate Member of the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HII over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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