Assessing Whether Huntington Ingalls Industries Inc (NYSE: HII) Is Over- Or Undervalued

Huntington Ingalls Industries Inc (HII) concluded trading on Thursday at a closing price of $291.47, with 0.43 million shares of worth about $126.78 million changed hands on the day. Half year performance of the stock remained positive as price took a surge of 43.45% during that period and on March 28, 2024 the price saw a gain of about 0.59%. Currently the company’s common shares owned by public are about 39.62M shares, out of which, 39.30M shares are available for trading.

However, the stock later moved at a day high price of 293.12, or with a gain of 0.59%. Stock saw a price change of -0.84% in past 5 days and over the past one month there was a price change of -0.13%. Year-to-date (YTD), HII shares are showing a performance of 12.26% which increased to 40.93% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $188.51 but also hit the highest price of $299.50 during that period. The average intraday trading volume for Huntington Ingalls Industries Inc shares is 282.90K. The stock is currently trading 0.06% above its 20-day simple moving average (SMA20), while that difference is up 4.40% for SMA50 and it goes to 21.00% higher than SMA200.

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Huntington Ingalls Industries Inc (NYSE: HII) currently have 39.62M outstanding shares and institutions hold larger chunk of about 91.89% of that.

The stock has a current market capitalization of $11.54B and its 3Y-monthly beta is at 0.60. PE ratio of stock for trailing 12 months is 17.04, while it has posted earnings per share of $17.10 in the same period. Its PEG reads 2.63 and has Quick Ratio of 0.89 while making debt-to-equity ratio of 0.67. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for HII, volatility over the week remained 1.35% while standing at 1.49% over the month.

Analysts are in expectations that Huntington Ingalls Industries Inc (HII) stock would likely to be making an EPS of $3.51 in the current quarter, while forecast for next quarter EPS is $3.83 and it is $19.29 for next year. For the current quarter EPS, analysts have given the company a lowest target $3.23 which is $3.74 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $3.23 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -3.53% while it is estimated to increase by 16.36% in next year. EPS is likely to grow at an annualized rate of 6.49% for next 5-years, compared to annual growth of -2.21% made by the stock over the past 5-years.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Barclays on January 05, 2024 offering an Equal weight rating for the stock and assigned a target price range of between $250 and $280 to it. Coverage by JP Morgan stated Huntington Ingalls Industries Inc (HII) stock as an Overweight in their note to investors on September 28, 2023, suggesting a price target of $247 for the stock. On September 28, 2023, Deutsche Bank Initiated their recommendations, while on December 08, 2022, Barclays Upgrade their ratings for the stock with a price target of $270. Stock get an Underperform rating from BofA Securities on November 11, 2022.

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