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Earnings Growth & Price Strength Make Huntington Ingalls (HII) a Stock to Watch

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Breaking Down the Zacks Focus List

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Focus List Methodology

When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.

Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.

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The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.

Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.

Focus List Spotlight: Huntington Ingalls (HII - Free Report)

Based in Newport News, VA, Huntington Ingalls Industries designs, builds and maintains nuclear-powered ships such as aircraft carriers and submarines, and non-nuclear ships, such as surface combatants, expeditionary warfare/amphibious assault and coastal defense surface ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe.

On May 9, 2016, HII was added to the Focus List at $155.20 per share. Shares have increased 39.14% to $211.88 since then, and the company is a #3 (Hold) on the Zacks Rank.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased $0.69 to $12.80. HII boasts an average earnings surprise of 1.1%.

Moreover, analysts are expecting HII's earnings to grow 28% for the current fiscal year.

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