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Here's Why You Should Add HII Stock to Your Portfolio Right Now
ZACKS· 2026-01-15 14:35
Core Insights - Huntington Ingalls Industries (HII) is positioned as a strong investment option in the aerospace sector due to its robust market presence, solid liquidity, and low debt levels [1] Growth Projections - The Zacks Consensus Estimate for HII's 2026 earnings per share is $17.19, indicating a year-over-year growth of 14% [2] - The consensus estimate for 2026 sales is $12.66 billion, reflecting a year-over-year increase of 4.9% [2] - HII's long-term earnings growth rate is projected at 14.4% over the next three to five years [2] - The company has delivered an average earnings surprise of 14.52% in the last four quarters [2] Debt Position - HII's total debt to capital ratio stands at 35.12%, which is significantly better than the industry average of 51.29% [3] - The times interest earned (TIE) ratio for HII at the end of Q3 2025 was 7.70, indicating strong capability to meet interest obligations [3] Liquidity - HII's current ratio at the end of Q3 was 1.14, demonstrating the company's ability to meet short-term liabilities without difficulties [4] Shipbuilding Focus - HII benefits from strong demand for U.S. Navy shipbuilding, with key projects like Virginia-class submarines and the CVN 79 Kennedy aircraft carrier advancing [5] - The company has a record backlog of $55.68 billion as of September 30, 2025, which supports expected revenue growth of around 4 to 5 percent annually through 2027 [5] - HII is expanding its capabilities in autonomous and unmanned systems, positioning itself well for long-term naval modernization [6] Stock Performance - HII shares have gained 46.9% over the past three months, outperforming the industry's growth of 8.3% [7]