Huntington Ingalls Industries (HII) is under the spotlight after all five collective bargaining units at its Ingalls Shipbuilding division ratified new contracts, which deliver an immediate 18% or higher base wage increase.
See our latest analysis for Huntington Ingalls Industries.
At a share price of US$407.98, HII has given investors a 21.19% 90 day share price return and a 106.28% 1 year total shareholder return. This suggests recent momentum has been strong, even as the 30 day share price return of 3.98% and 1 day move of 2.50% have cooled in the short term. The new Ingalls wage agreements and ongoing submarine and amphibious programs are helping frame expectations around both future growth potential and execution risk.
If you are weighing defense exposure, it can be useful to compare HII with other complex engineering names and see what else is gaining attention through the 26 power grid technology and infrastructure stocks
With HII trading around US$408, close to its US$403 analyst price target yet showing an estimated 10% intrinsic discount, the key question is whether recent gains leave upside on the table or if markets already reflect future growth.
Most Popular Narrative: 9.4% Undervalued
Vestra’s widely followed narrative puts Huntington Ingalls Industries fair value at $450.23, compared with the last close of $407.98, framing HII as modestly undervalued on that view.
The 2026 narrative is defined by HII's "Digital Transformation of the Shipyard." To offset rising labor costs, HII has partnered with Path Robotics to integrate Physical AI and autonomous welding into its Newport News and Ingalls shipyards. This is not just a tech buzzword; it is a mechanical necessity to hit the Navy’s "2+1" submarine production cadence. Furthermore, the Mission Technologies segment has officially surpassed $3 billion in revenue, proving that HII is no longer just a "steel bender" but a high-tech provider of unmanned underwater vehicles (UUVs) like the REMUS 100, which recently reported a near-perfect 935-mission availability rate.
Want to see what sits behind that $450.23 fair value? The narrative leans on throughput gains, a swelling backlog and higher margin tech work that reshapes how this shipbuilder gets valued.
Result: Fair Value of $450.23 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to watch for wage driven margin pressure and any fixed price contract overruns that could quickly dull the 9.4% undervaluation story.
Find out about the key risks to this Huntington Ingalls Industries narrative.
Next Steps
With sentiment split between potential upside and clear risk flags, it makes sense to move quickly and test the data for yourself using the 3 key rewards and 1 important warning sign
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Before you move on, use this momentum to scan a wider mix of opportunities so you are not relying on a single defense name to carry your portfolio.
- Target resilience by focusing on companies that combine financial strength with consistent metrics using the solid balance sheet and fundamentals stocks screener (39 results)
- Track potential mispricings by running a quick check for quality names trading below estimated value through the 52 high quality undervalued stocks
- Boost your income watchlist by zeroing in on higher yielding names screened with the 13 dividend fortresses
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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