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 Wins Navy Deal to Support USS Columbus
Read MoreHide Full Article
Huntington Ingalls Industries, Inc.'s (HII - Free Report) unit, Newport News, has clinched a modification contract to support the USS Columbus (SSN 762) ship. Work related to the deal is scheduled to be completed by August 2019.
Details of the Deal
Valued at $18.9 million, the contract was awarded by the Supervisor of Shipbuilding, Conversion and Repair, Newport News, VI. Per the modification, Newport News will support maintenance, repair, fleet-funded alterations, testing and routine work related to the USS Columbus.
The entire task will be performed in Newport News, VI.
A Brief Note on the USS Columbus
USS Columbus (SSN-762), the fourth ship of the Navy to be named after Columbus, OH, is a Los Angeles-class attack submarine. It is to be noted that on Mar 21, 1986, General Dynamics Corporation's (GD) Electric Boat division had received a contract to build the ship.
Our View
Huntington Ingalls is the prime industrial employer in Virginia. Through its Newport News segment, the company operates as the nation's sole designer, builder and refueler of nuclear-powered aircraft carriers. Notably, over 70% of the active Navy fleet comprise Huntington Ingalls ships. The company's Ingalls Shipbuilding segment is the sole manufacturer of amphibious assault ships for the Navy.
Also, we note that Huntington Ingalls is the only builder of National Security Cutters (NSCs) for the U.S. Coast Guard and one of only two companies that build the DDG-51 Arleigh Burke-class destroyers. These attributes helped the company to win regular shipbuilding related orders from the Pentagon. The latest contract win is a bright instance of the same.
We expect Huntington Ingalls to maintain this momentum, given the current U.S. administration’s favoritism toward increasing defense spending. Notably, the shipbuilding business outlook remains strong, particularly in light of the U.S. Navy’s latest shipbuilding plan that calls for building a 355-ship fleet. In sync with this, Congressional Budget Office expects average construction costs for the Navy’s 2019 shipbuilding plan to be $28.9 billion per year over the next 30 years. This amount is 80% more than what the Navy has spent, on average, over the past 30 years.
Price Movement
In a year’s time, shares of Huntington Ingalls have plunged 18.6%, underperforming the industry’s 1.6% fall.
Zacks Rank
Huntington Ingalls currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same sector are The Boeing Company (BA - Free Report) , Spirit Aerosystems Holdings (SPR - Free Report) and Heico Corporation (HEI - Free Report) . While Boeing and Spirit Aerosystems sport a Zacks Rank #1 (Strong Buy), Heico carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boeing delivered average positive earnings surprise of 17.08% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has moved 11.3% north to $20.13 over the past 90 days.
Spirit Aerosystems’ long-term growth estimate currently stands at 7.80%. The Zacks Consensus Estimate for 2019 earnings has climbed 3.7% to $7.56 over the past 90 days.
Heico Corporation’s long-term growth estimate is pegged at 12.10%. The Zacks Consensus Estimate for 2019 earnings has moved up 5.9% to $2.14 over the past 90 days.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Huntington Ingalls Wins Navy Deal to Support USS Columbus
Huntington Ingalls Industries, Inc.'s (HII - Free Report) unit, Newport News, has clinched a modification contract to support the USS Columbus (SSN 762) ship. Work related to the deal is scheduled to be completed by August 2019.
Details of the Deal
Valued at $18.9 million, the contract was awarded by the Supervisor of Shipbuilding, Conversion and Repair, Newport News, VI. Per the modification, Newport News will support maintenance, repair, fleet-funded alterations, testing and routine work related to the USS Columbus.
The entire task will be performed in Newport News, VI.
A Brief Note on the USS Columbus
USS Columbus (SSN-762), the fourth ship of the Navy to be named after Columbus, OH, is a Los Angeles-class attack submarine. It is to be noted that on Mar 21, 1986, General Dynamics Corporation's (GD) Electric Boat division had received a contract to build the ship.
Our View
Huntington Ingalls is the prime industrial employer in Virginia. Through its Newport News segment, the company operates as the nation's sole designer, builder and refueler of nuclear-powered aircraft carriers. Notably, over 70% of the active Navy fleet comprise Huntington Ingalls ships. The company's Ingalls Shipbuilding segment is the sole manufacturer of amphibious assault ships for the Navy.
Also, we note that Huntington Ingalls is the only builder of National Security Cutters (NSCs) for the U.S. Coast Guard and one of only two companies that build the DDG-51 Arleigh Burke-class destroyers. These attributes helped the company to win regular shipbuilding related orders from the Pentagon. The latest contract win is a bright instance of the same.
We expect Huntington Ingalls to maintain this momentum, given the current U.S. administration’s favoritism toward increasing defense spending. Notably, the shipbuilding business outlook remains strong, particularly in light of the U.S. Navy’s latest shipbuilding plan that calls for building a 355-ship fleet. In sync with this, Congressional Budget Office expects average construction costs for the Navy’s 2019 shipbuilding plan to be $28.9 billion per year over the next 30 years. This amount is 80% more than what the Navy has spent, on average, over the past 30 years.
Price Movement
In a year’s time, shares of Huntington Ingalls have plunged 18.6%, underperforming the industry’s 1.6% fall.
Zacks Rank
Huntington Ingalls currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same sector are The Boeing Company (BA - Free Report) , Spirit Aerosystems Holdings (SPR - Free Report) and Heico Corporation (HEI - Free Report) . While Boeing and Spirit Aerosystems sport a Zacks Rank #1 (Strong Buy), Heico carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boeing delivered average positive earnings surprise of 17.08% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has moved 11.3% north to $20.13 over the past 90 days.
Spirit Aerosystems’ long-term growth estimate currently stands at 7.80%. The Zacks Consensus Estimate for 2019 earnings has climbed 3.7% to $7.56 over the past 90 days.
Heico Corporation’s long-term growth estimate is pegged at 12.10%. The Zacks Consensus Estimate for 2019 earnings has moved up 5.9% to $2.14 over the past 90 days.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>