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Here's Why You Should Add HII Stock to Your Portfolio Right Now

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Key Takeaways

  • HII benefits from strong U.S. Navy shipbuilding demand and a record $55.68B backlog supporting revenue growth.
  • HII delivered an average earnings surprise of 14.52% over the past four quarters.
  • HII maintains low leverage with 35.12% debt to capital and solid liquidity.

Huntington Ingalls Industries’ (HII - Free Report) robust presence in the aerospace market, solid liquidity and low debt are strong upsides. Given its growth prospects, HII makes for a solid investment option in the Aerospace sector.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.

Growth Projections & Surprise History of HII

The Zacks Consensus Estimate for 2026 earnings per share is pegged at $17.19, which indicates year-over-year growth of 14%.

The consensus estimate for 2026 sales is pegged at $12.66 billion, which implies a year-over-year increase of 4.9%.

HII’s long-term (three-to-five years) earnings growth rate is 14.4%.

It delivered an average earnings surprise of 14.52% in the last four quarters.

HII Stock’s Debt Position

Currently, the company’s total debt to capital is 35.12%, better than the industry’s average of 51.29%.

HII’s times interest earned (TIE) ratio at the end of the third quarter of 2025 was 7.70. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.

HII’s Liquidity

HII’s current ratio at the end of the third quarter was 1.14. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.

Huntington Ingalls’ Shipbuilding Focus

Huntington Ingalls Industries continues to benefit from strong demand for U.S. Navy shipbuilding, supported by steady progress across its aircraft carrier, submarine and surface combatant programs. During the third quarter, the company advanced key projects, including Virginia-class submarines, the CVN 79 Kennedy aircraft carrier, and several destroyer and amphibious ship programs. Its record backlog of $55.68 billion as of Sept. 30, 2025 provides solid revenue visibility and supports expected revenue growth of around 4 to 5 percent annually through 2027.

At the same time, the company is expanding its capabilities in autonomous and unmanned systems through new partnerships and the launch of the ROMULUS unmanned surface vessel platform. These efforts, combined with favorable U.S. defense funding for shipbuilding and submarines, position Huntington Ingalls well to benefit from long-term naval modernization while maintaining a stable financial and liquidity profile.

HII Stock Price Performance

Shares of HII have gained 46.9% in the past three months compared with the industry’s 8.3% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the same industry are Draganfly (DPRO - Free Report) , GE Aerospace (GE - Free Report) and Intuitive Machines Inc. (LUNR - Free Report) . Each of these stocks carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for DPRO’s 2026 loss is pinned at 47 cents per share, which indicates a year-over-year improvement. The Zacks Consensus Estimate for 2026 sales is pegged at $12.6 million, which implies year-over-year growth of 121.6%.

GE Aerospace delivered an average earnings surprise of 19.05% in the last four quarters. The Zacks Consensus Estimate for GE’s 2026 earnings is pegged at $7.01 per share, which calls for year-over-year growth of 12.9%.

The Zacks Consensus Estimate for LUNR’s 2026 loss stands at 11 cents per share, which indicates a year-over-year improvement. The Zacks Consensus Estimate for 2026 sales is pegged at $456 million, which suggests year-over-year growth of 108.7%.

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