Valued at a market cap of $9.1 billion, Huntington Ingalls Industries, Inc. (HII) is a  leading military shipbuilder and a provider of advanced defense technologies. The Newport News, Virginia-based company delivers nuclear-powered aircraft carriers, submarines, amphibious assault ships, destroyers, national security cutters, and innovative C5ISR and autonomous systems. 

Companies valued at $2 billion or more are typically classified as “mid-cap stocks,” and HII fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the aerospace & defense industry. The company distinguishes itself as one of the largest military shipbuilders in the U.S. and the sole producer of U.S. Navy nuclear-powered aircraft carriers. Its deep expertise, skilled workforce, and multi-decade contracts provide long-term revenue visibility and national security alignment.

This military shipbuilder is currently trading 19% below its 52-week high of $285.81, reached on Aug. 1, 2024. HII has soared 12.5% over the past three months, outpacing the Dow Jones Industrial Average’s ($DOWI) 1.2% rise during the same time frame.

Moreover, on a YTD basis, shares of HII are up 22.6%, outperforming DOWI’s 1.3% return. However, in the longer term, HII has declined 7.8% over the past 52 weeks, lagging behind DOWI’s 9.3% uptick over the same time frame.

To confirm its bullish trend, HII has been trading above its 200-day moving average since late April, and has remained above its 50-day moving average since early March, with minor fluctuations. 

HII’s shares plunged 1.2% on May 1 following its mixed Q1 earnings release. Weaker performance across all three of its reportable segments led to a 2.5% year-over-year decline in the company’s total sales and service revenue to $2.7 billion. This top-line figure fell short of the consensus estimates by 2.2%. However, on a positive note, while its EPS of $3.79 fell 2.1% from the same period last year, it topped the forecasted figure by a notable margin of 30.7%. The strong bottom-line outperformance was supported by higher segment operating income, aided by successful cost-saving initiatives.

HII has lagged behind its rival, General Dynamics Corporation’s (GD) 5.9% drop over the past 52 weeks. However, it has outpaced GD’s 6.7% uptick on a YTD basis. 

Despite HII’s recent outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 10 analysts covering it, and the mean price target of $240.36 suggests a 3.8% premium to its current price levels.