We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Huntington Ingalls Hits a 52-Week High on Stable Financials
Read MoreHide Full Article
Shares of Huntington Ingalls Industries, Inc. (HII - Free Report) reached a new 52-week high of $158.00 on Jun 3, finally closing a little lower at $157.59. In fact, the largest military shipbuilder in the U.S. has seen its stock price climb about 27.8% so far this year, outperforming the S&P 500 peer group average of 4.3% over the same time frame.
What’s Driving the Huntington Ingalls Stock?
Huntington Ingalls, the sole designer and manufacturer of nuclear powered aircraft carriers in the U.S., was once an affiliate of Northrop Grumman Corp. (NOC - Free Report) . The company was spun off in Mar 2011 and is now the prime industrial employer in Virginia. More than 70% of the active U.S. Navy fleet consists of Huntington Ingalls ships.
Huntington Ingalls, which has a dominant position in long-tailed, big-ticket, naval warship programs, has a long-term EPS growth rate of 10.8% (higher than the industry average of 10.2%).
The stock also sells for a cheaper P/E ratio of 15.62 than the industry average of 16.60. Its return on equity or ROE of 27.52% is greater than the X-industry of 19.53%.
Huntington Ingalls maintains stable liquidity and capital resources to fund its operations. The company’s net cash from operating activities in the first quarter increased 440% to $54 million from $10 million a year ago. Free cash flow was $17 million versus free cash outflow of $10 million a year ago.
In addition, the company focuses on maximizing shareholder value, through both share repurchases and increased dividend payouts. During the first quarter of 2016, the company paid out $24 million as dividends, up from $19 million a year ago. It also repurchased common stock, worth $44 million, up from $29 million a year ago.
Given the positive shipbuilding business outlook in the enacted fiscal 2016 and proposed fiscal 2017 budget, the company seems to be well poised for further gains. Recently, the U.S. Navy unveiled its five-year budget proposal that allocates $81.4 billion for the purchase of 38 warships, submarines and support vessels during the 2017–2021 time frame.
Zacks Rank
Currently, Huntington Ingalls has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the defense space include CAE Inc. (CAE - Free Report) and Esterline Technologies Corp. , both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Huntington Ingalls Hits a 52-Week High on Stable Financials
Shares of Huntington Ingalls Industries, Inc. (HII - Free Report) reached a new 52-week high of $158.00 on Jun 3, finally closing a little lower at $157.59. In fact, the largest military shipbuilder in the U.S. has seen its stock price climb about 27.8% so far this year, outperforming the S&P 500 peer group average of 4.3% over the same time frame.
What’s Driving the Huntington Ingalls Stock?
Huntington Ingalls, the sole designer and manufacturer of nuclear powered aircraft carriers in the U.S., was once an affiliate of Northrop Grumman Corp. (NOC - Free Report) . The company was spun off in Mar 2011 and is now the prime industrial employer in Virginia. More than 70% of the active U.S. Navy fleet consists of Huntington Ingalls ships.
Huntington Ingalls, which has a dominant position in long-tailed, big-ticket, naval warship programs, has a long-term EPS growth rate of 10.8% (higher than the industry average of 10.2%).
The stock also sells for a cheaper P/E ratio of 15.62 than the industry average of 16.60. Its return on equity or ROE of 27.52% is greater than the X-industry of 19.53%.
Huntington Ingalls maintains stable liquidity and capital resources to fund its operations. The company’s net cash from operating activities in the first quarter increased 440% to $54 million from $10 million a year ago. Free cash flow was $17 million versus free cash outflow of $10 million a year ago.
In addition, the company focuses on maximizing shareholder value, through both share repurchases and increased dividend payouts. During the first quarter of 2016, the company paid out $24 million as dividends, up from $19 million a year ago. It also repurchased common stock, worth $44 million, up from $29 million a year ago.
Given the positive shipbuilding business outlook in the enacted fiscal 2016 and proposed fiscal 2017 budget, the company seems to be well poised for further gains. Recently, the U.S. Navy unveiled its five-year budget proposal that allocates $81.4 billion for the purchase of 38 warships, submarines and support vessels during the 2017–2021 time frame.
Zacks Rank
Currently, Huntington Ingalls has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the defense space include CAE Inc. (CAE - Free Report) and Esterline Technologies Corp. , both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>