Here's Why Huntington Ingalls (HII) is a Strong Value Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [3] - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate shifts [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, outperforming the S&P 500 [7] - There can be over 800 top-rated stocks daily, making it challenging for investors to choose the best options, which is where Style Scores become beneficial [8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] Company Spotlight: Huntington Ingalls Industries (HII) - Huntington Ingalls Industries, based in Newport News, VA, specializes in designing, building, and maintaining nuclear and non-nuclear ships for the U.S. Navy and Coast Guard [11] - HII holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Value Style Score of B, supported by a forward P/E ratio of 18.11 [12] - Recent analyst revisions have increased earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising by $0.33 to $14.75 per share, alongside an average earnings surprise of +3.2% [12]