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Huntington Ingalls (HII) Wins Deal for Aircraft Carrier CVN 79
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Huntington Ingalls Industries Inc.’s (HII - Free Report) division, Newport News Shipbuilding, recently secured a modification contract for the detailed design and construction of consolidated afloat networks and enterprise services outfitting effort onboard its aircraft carrier John F. Kennedy (CVN 79). The award has been provided by the Supervisor of Shipbuilding in Newport News, VA.
Valued at $37.5 million, this contract is projected to be completed by July 2025. Work related to this contract will be carried out in Newport News, VA.
What’s Favoring Huntington Ingalls?
Nations across the globe are fortifying their naval capacity, owing to the rising geopolitical issues and territorial disputes between various nations. This has led to augmented spending on aircraft carrier ships for enhanced sea warfare capabilities.
Such increased spending trends on sea warfare are likely to benefit Huntington Ingalls, with its Newport News Shipbuilding unit having more than 135 years of experience in shipbuilding. Notably, this segment has built more than 31 aircraft carriers for the U.S. Navy since 1933. Moreover, HII is the only company that is currently capable of designing, manufacturing and refueling nuclear-powered aircraft carriers in the United States.
Such remarkable features are likely to have been ushering in notable Navy contract flows for Huntington Ingalls, like the latest one, and many more. Impressively, on Feb 21, 2024, HII began topside testing the electromagnetic aircraft launch system on aircraft carrier CVN 79 to replace the existing steam catapults in use on the Nimitz-class (CVN 68) aircraft carriers. In January 2024, the company was awarded a contract to carry out RCOH work on USS Harry S. Truman (CVN 75).
Such contract wins are likely to enhance HII’s revenue generation prospects.
Growth Prospects
As demand for an efficient security system that can strengthen a nation’s naval sea warfare capabilities is on the rise, so is the prospect of the aircraft carrier market. Looking ahead, per a report from the Mordor Intelligence firm, the aircraft carrier ship market is estimated to witness a CAGR of 12.8% during 2024-2029. This market growth opportunity should boost Huntington Ingalls’ operating results as it is one of the prime contractors of aircraft carrier ships.
Another defense player that can gain from the expanding aircraft carrier ship market is BAE Systems PLC (BAESY - Free Report) .
BAE Systems designs, builds, commissions, repairs and supports a full range of complex naval ships, from offshore patrol vessels to aircraft carriers. Its Queen Elizabeth Class Aircraft Carriers are the largest warships ever constructed in the U.K. These huge ships use the latest technology and equipment, which enables them to operate with a streamlined crew of 679.
BAESY boasts a long-term (three-to five-years) earnings growth rate of 12.9%. The Zacks Consensus Estimate for 2024 sales indicates growth of 34.1% from 2023’s estimated figure.
Price Performance
In the past year, shares of Huntington Ingalls have gained 37.9% against the industry’s 0.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Huntington Ingalls currently has a Zacks Rank #3 (Hold).
TXT boasts a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for 2024 sales indicates growth of 7% from that reported in 2023.
The Zacks Consensus Estimate for Textron’s 2024 earnings indicates growth of 10% from that reported in 2023. The stock delivered an average earnings surprise of 13.53% in the last four quarters.
LDOS boasts a long-term earnings growth rate of 8.1%. The Zacks Consensus Estimate for 2024 sales indicates growth of 3.5% from that reported in 2023.
The Zacks Consensus Estimate for Leidos’ 2024 earnings indicates growth of 6.2% from that reported in 2023. The stock delivered an average earnings surprise of 11.85% in the last four quarters.
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Huntington Ingalls (HII) Wins Deal for Aircraft Carrier CVN 79
Huntington Ingalls Industries Inc.’s (HII - Free Report) division, Newport News Shipbuilding, recently secured a modification contract for the detailed design and construction of consolidated afloat networks and enterprise services outfitting effort onboard its aircraft carrier John F. Kennedy (CVN 79). The award has been provided by the Supervisor of Shipbuilding in Newport News, VA.
Valued at $37.5 million, this contract is projected to be completed by July 2025. Work related to this contract will be carried out in Newport News, VA.
What’s Favoring Huntington Ingalls?
Nations across the globe are fortifying their naval capacity, owing to the rising geopolitical issues and territorial disputes between various nations. This has led to augmented spending on aircraft carrier ships for enhanced sea warfare capabilities.
Such increased spending trends on sea warfare are likely to benefit Huntington Ingalls, with its Newport News Shipbuilding unit having more than 135 years of experience in shipbuilding. Notably, this segment has built more than 31 aircraft carriers for the U.S. Navy since 1933. Moreover, HII is the only company that is currently capable of designing, manufacturing and refueling nuclear-powered aircraft carriers in the United States.
Such remarkable features are likely to have been ushering in notable Navy contract flows for Huntington Ingalls, like the latest one, and many more. Impressively, on Feb 21, 2024, HII began topside testing the electromagnetic aircraft launch system on aircraft carrier CVN 79 to replace the existing steam catapults in use on the Nimitz-class (CVN 68) aircraft carriers. In January 2024, the company was awarded a contract to carry out RCOH work on USS Harry S. Truman (CVN 75).
Such contract wins are likely to enhance HII’s revenue generation prospects.
Growth Prospects
As demand for an efficient security system that can strengthen a nation’s naval sea warfare capabilities is on the rise, so is the prospect of the aircraft carrier market. Looking ahead, per a report from the Mordor Intelligence firm, the aircraft carrier ship market is estimated to witness a CAGR of 12.8% during 2024-2029. This market growth opportunity should boost Huntington Ingalls’ operating results as it is one of the prime contractors of aircraft carrier ships.
Another defense player that can gain from the expanding aircraft carrier ship market is BAE Systems PLC (BAESY - Free Report) .
BAE Systems designs, builds, commissions, repairs and supports a full range of complex naval ships, from offshore patrol vessels to aircraft carriers. Its Queen Elizabeth Class Aircraft Carriers are the largest warships ever constructed in the U.K. These huge ships use the latest technology and equipment, which enables them to operate with a streamlined crew of 679.
BAESY boasts a long-term (three-to five-years) earnings growth rate of 12.9%. The Zacks Consensus Estimate for 2024 sales indicates growth of 34.1% from 2023’s estimated figure.
Price Performance
In the past year, shares of Huntington Ingalls have gained 37.9% against the industry’s 0.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Huntington Ingalls currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry are Textron Inc. (TXT - Free Report) and Leidos Holdings Inc. (LDOS - Free Report) . Textron sports a Zacks Rank #1 (Strong Buy), while Leidos carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TXT boasts a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for 2024 sales indicates growth of 7% from that reported in 2023.
The Zacks Consensus Estimate for Textron’s 2024 earnings indicates growth of 10% from that reported in 2023. The stock delivered an average earnings surprise of 13.53% in the last four quarters.
LDOS boasts a long-term earnings growth rate of 8.1%. The Zacks Consensus Estimate for 2024 sales indicates growth of 3.5% from that reported in 2023.
The Zacks Consensus Estimate for Leidos’ 2024 earnings indicates growth of 6.2% from that reported in 2023. The stock delivered an average earnings surprise of 11.85% in the last four quarters.