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Reasons to Include Huntington Ingalls Stock in Your Portfolio
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Huntington Ingalls Industries (HII - Free Report) , with rising earnings estimates, robust ROE, better debt management, a solid backlog and shareholder-friendly initiatives, offers a great investment opportunity in the Zacks Aerospace Defense industry.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment.
Growth Forecast & Surprise History of HII
The Zacks Consensus Estimate for HII’s 2025 earnings per share (EPS) has increased 3.3% to $14.31 per share over the past 30 days.
The Zacks Consensus Estimate for HII’s total revenues for 2025 stands at $11.91 billion, indicating year-over-year growth of 3.3%.
The company’s (three to five years) earnings growth rate is pegged at 11%. HII surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 4.20% in the last four quarters.
HII’s Return on Equity
Return on equity (ROE) measures how effectively a company has used its funds to generate higher returns. HII currently has an ROE of 12.26% compared to the industry's average of 10.75%. This suggests that the company has been utilizing its funds more effectively than its peers in the industry.
HII’s Shareholder-Friendly Initiatives
Huntington Ingalls has been increasing shareholders’ value through dividend payments. Currently, the company’s quarterly dividend is $1.35 per share, resulting in an annualized dividend of $5.40. During the first quarter of 2025, the company paid dividends worth $53 million. The company’s current dividend yield is 2.40%, better than the Zacks S&P 500 Composite's average of 1.27%.
HII’s Rising Backlog
With the strong demand that Huntington Ingalls products enjoy, the company’s order growth remains solid. The value of the company’s new contract awards won in the first quarter of 2025 was nearly $2.1 billion. This resulted in a total backlog of $48.05 billion as of March 31, 2025. Such a significant backlog count bodes well for the company's revenue generation prospects in the coming years.
Overview of HII’s Debt Profile
Currently, Huntington Ingalls’ total debt to capital is 40.15%, better than the industry’s average of 52.09%.
HII’s times interest earned ratio (TIE) at the end of the first quarter of 2025 was 7.3. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
HII Stock Price Performance
In the past three months, HII shares have risen 28% compared with the industry’s growth of 8%.
HWM’s long-term earnings growth rate is 19%. The Zacks Consensus Estimate for Howmet’s 2025 sales is pegged at $8.06 billion, which implies an improvement of 8.5%.
EADSY’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for Airbus’ total revenues for 2025 stands at $82.57 billion, which indicates growth of 10.4%.
GE’s long-term earnings growth rate is 15.1%. The company delivered an average earnings surprise of 17.97% in the last four quarters.
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Reasons to Include Huntington Ingalls Stock in Your Portfolio
Huntington Ingalls Industries (HII - Free Report) , with rising earnings estimates, robust ROE, better debt management, a solid backlog and shareholder-friendly initiatives, offers a great investment opportunity in the Zacks Aerospace Defense industry.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment.
Growth Forecast & Surprise History of HII
The Zacks Consensus Estimate for HII’s 2025 earnings per share (EPS) has increased 3.3% to $14.31 per share over the past 30 days.
The Zacks Consensus Estimate for HII’s total revenues for 2025 stands at $11.91 billion, indicating year-over-year growth of 3.3%.
The company’s (three to five years) earnings growth rate is pegged at 11%. HII surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 4.20% in the last four quarters.
HII’s Return on Equity
Return on equity (ROE) measures how effectively a company has used its funds to generate higher returns. HII currently has an ROE of 12.26% compared to the industry's average of 10.75%. This suggests that the company has been utilizing its funds more effectively than its peers in the industry.
HII’s Shareholder-Friendly Initiatives
Huntington Ingalls has been increasing shareholders’ value through dividend payments. Currently, the company’s quarterly dividend is $1.35 per share, resulting in an annualized dividend of $5.40. During the first quarter of 2025, the company paid dividends worth $53 million. The company’s current dividend yield is 2.40%, better than the Zacks S&P 500 Composite's average of 1.27%.
HII’s Rising Backlog
With the strong demand that Huntington Ingalls products enjoy, the company’s order growth remains solid. The value of the company’s new contract awards won in the first quarter of 2025 was nearly $2.1 billion. This resulted in a total backlog of $48.05 billion as of March 31, 2025. Such a significant backlog count bodes well for the company's revenue generation prospects in the coming years.
Overview of HII’s Debt Profile
Currently, Huntington Ingalls’ total debt to capital is 40.15%, better than the industry’s average of 52.09%.
HII’s times interest earned ratio (TIE) at the end of the first quarter of 2025 was 7.3. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
HII Stock Price Performance
In the past three months, HII shares have risen 28% compared with the industry’s growth of 8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Howmet Aerospace Inc. (HWM - Free Report) , which sports a Zacks Rank #1 (Strong Buy), and Airbus SE (EADSY - Free Report) and GE Aerospace (GE - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HWM’s long-term earnings growth rate is 19%. The Zacks Consensus Estimate for Howmet’s 2025 sales is pegged at $8.06 billion, which implies an improvement of 8.5%.
EADSY’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for Airbus’ total revenues for 2025 stands at $82.57 billion, which indicates growth of 10.4%.
GE’s long-term earnings growth rate is 15.1%. The company delivered an average earnings surprise of 17.97% in the last four quarters.