Huntington Ingalls Indus Stock (NYSE: HII)

Huntington Ingalls Indus Stock (NYSE:HII), Trade Ideas

Huntington Ingalls Indus

Huntington Ingalls Industries is the largest independent military shipbuilder in the U.S., spun off of Northrop Grumman in 2011. It operates three segments, two of which are storied shipyards: Ingalls produces non-nuclear-powered ships including amphibious landing ships and Arleigh Burke-class destroyers while Newport News produces nuclear-powered ships as the only producer of Gerald Ford-class aircraft carriers and a major subcontractor on Virginia and Columbia-class nuclear submarines. Huntington Ingalls shares production of destroyers and nuclear submarines with General Dynamics' Bath Iron Works and Electric Boat shipyards, respectively. The company's Mission Technologies segment produces uncrewed sea vessels and provides a range of IT and other services to U.S. government agencies.

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On CNBC’s &#34;Mad Money Lightning Round,&#34; Jim Cramer said he likes  Visa Inc.  (NYSE: V) very much here and also likes that settlement that was announced on Tuesday. &#34;The stock is too close to it’s all time high.

Jim Cramer: Visa Is &#39;Too Close To All-Time High,&#39; Chart Industries Is &#39;Absolutely Terrific&#39;

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SNAP

The Nasdaq 100 closed lower by around 80 points on Monday. Investors, meanwhile, focused on some notable insider trades.

Snap, American Express And 2 Other Stocks Insiders Are Selling

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Huntington Ingalls Industries Inc reported strong Q4 results with sales of $3.18B, beating expectations. EPS also beat at $6.90. FY24 outlook shows growth and cash generation.

Huntington Ingalls Cruises Past Forecasts: Q4 Sales And Earnings Spike, 2024 Outlook Fuel Optimism

Huntington Ingalls Industries, Inc. Common Stock

Huntington Ingalls Industries Inc

HIDILI INDS I/D UNSP/ADR by Hidili Industry International Development Ltd.

Hidili Industry International Development Ltd

<p>Richard M. McCool Jr.&nbsp;is the 13th&nbsp;San Antonio-class ship delivered by Ingalls and is the final Flight I transition ship before Ingalls moves into production of the LPD Flight II line.</p>


Reported Earlier, Ingalls Shipbuilding Delivers Final Flight I San Antonio-Class Ship, Richard M. McCool Jr., To U.S. Navy

Contracts

HII Awarded $74M Contract To Support U.S. Navy Vertical Launch Systems

<p>On CNBC&rsquo;s &quot;Mad Money Lightning Round,&quot; <strong>Jim Cramer</strong> said he likes <strong> Visa Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/v#NYSE">V</a>) very much here and also likes that settlement that was announced on Tuesday. &quot;The stock is too close to it&rsquo;s all time high. If it comes in a little, I <a href="https://www.benzinga.com/markets/equities/24/03/37939460/visa-and-mastercard-settle-historic-antitrust-suit-with-us-merchants-whats-on-the-cards">would be a buyer,&quot; he added.</a></p>
<p>Visa and <strong>Mastercard Incorporated</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ma#NYSE">MA</a>) reached a landmark antitrust class action settlement with U.S. merchants. Subject to approval by the U.S. District Court for the Eastern District of New York, the settlement is one of the largest in U.S. antitrust history, according to a statement.</p>
<p>Cramer said no to <strong> State Street Corporation </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stt#NYSE">STT</a>) and said he likes <strong> Wells Fargo &amp; Company </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) and <strong>Morgan Stanley</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>).</p>
<p>State Street is expected to release financial results for its first quarter on Friday, April 12, 2024.</p>
<p>The &quot;Mad Money&quot; host said <strong> Chart Industries, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gtls#NYSE">GTLS</a>) is &quot;absolutely terrific.&quot;</p>
<p>On March 20, Chart Industries entered into collaboration with GasLog LNG Services on large scale liquid hydrogen deployment.</p>
<p>When asked about <strong> AECOM </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/acm#NYSE">ACM</a>), he said, &quot;We&rsquo;re not going to buy stocks that close to their high when the market looks soggy like it does now, we want it to come in a little before we buy AECOM.&quot;</p>
<p>On March 21, AECOM announced that its Board of Directors has declared a quarterly cash dividend of 22 CENTS per share as part of its ongoing quarterly dividend program.</p>
<p><strong>Huntington Ingalls Industries, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hii#NYSE">HII</a>) is a &quot;very good navy contractor that I&rsquo;ve liked ever since the spin off, &quot; Cramer said. &quot;It&rsquo;s had a very big run, but I think it can go higher. It&rsquo;s a winner, not a loser.&quot;</p>
<p>On March 21, JPMorgan analyst Seth Seifman maintained Huntington Ingalls Industries with an Overweight and raised the price target from $288 to $295.</p>
<h3><strong>Price Action:</strong></h3>
<ul>
<li>Shares of State Street gained 0.7% to close at $76.18 on Tuesday.</li>
<li>Visa shares fell 0.2% to close at $280.60.</li>
<li>Huntington Ingalls shares fell 0.3% to settle at $289.87 on Tuesday.</li>
<li>Chart Industries shares gained 2.2% to close at $163.05.</li>
<li>AECOM shares gained 1.1% to settle at $96.86 on Tuesday.</li>
</ul>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>Read Next: <a href="https://www.benzinga.com/news/24/03/37932649/wall-streets-most-accurate-analysts-say-hold-these-3-financial-stocks-delivering-high-dividend-yield"><em> Wall Street&#39;s Most Accurate Analysts Say Hold These 3 Financial Stocks Delivering High-Dividend Yields </em></a></p>


Jim Cramer: Visa Is 'Too Close To All-Time High,' Chart Industries Is 'Absolutely Terrific'

<p>JP Morgan  analyst Seth Seifman   maintains Huntington Ingalls Indus (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) with a Overweight and raises the price target from $288 to $295.</p>


Price Target

Analyst Ratings

JP Morgan Maintains Overweight on Huntington Ingalls Indus, Raises Price Target to $295

<p>HII (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) announced today that its Mission Technologies division was awarded a $305 million contract by the Defense Intelligence Agency (DIA) to provide intelligence analysis and operational support services for the Joint Intelligence Operations Center-Korea (JIOC-K).<br /><br />&nbsp;</p>
<p>HII will provide timely analysis of relevant and actionable intelligence that will enable United States Forces Korea (USFK) to understand enemy capabilities, detect threats and determine enemy courses of action. HII will also assist USFK in organizing the Korean Theater of Operations (KTO) intelligence activities to better leverage theater and global intelligence communities to safeguard U.S. personnel and interests within the KTO.</p>
<p>"We are excited about the opportunity to expand our relationship with the USFK and support its important mission while working in close coordination with the joint staff, service components and intelligence agencies," said Todd Gentry, president of Mission Technologies' C5ISR business group. "Our experts have a long history assessing and advising on national security issues and are committed to protecting U.S. regional interests."</p>
<p>The recompeted task order has a five-year term and is an extension of work performed under a previous contract awarded by the DIA in 2019.</p>
<p>&nbsp;</p>
<p>An image accompanying this release is available at: <a href="https://www.globenewswire.com/Tracker?data=Md9q4qsAGzmFU6SJxEJZVPSY1puENzUkwvrYgp7AG9AgSOiVMQD-ejPIseJqVr2wT26_4Wi_kUVnxse3sLWDzfe639O_CCRuQOXyyPRKwfQhNOkFU-StEONLDkrrw-DSa32XoNeSeObvbaWB5RWSYbLd4fP_YR0WC9aC71NCbJQWk8ZpSxK6W3rf1a-2LoCD7b9fF3AAEHXvCy_B8G8cjA==">https://hii.com/news/hii-awarded-republic-of-korea-contract-2024/</a>.</p>


HII Is Awarded $305M Contract To Protect U.S. Regional Interests In The Republic Of Korea

<p>HII (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) has received an order for a REMUS 620 unmanned underwater vehicle (UUV) from an international customer in the Indo-Pacific Region.<br />
&nbsp;</p>
<p>The customized, medium-class REMUS 620 UUV will be built and delivered in 2024 by HII&#39;s Mission Technologies division and will be used for monitoring and data collection missions.</p>
<p>Unveiled in 2022, the REMUS 620 has a battery life of up to 110 hours and a range of 275 nautical miles, providing unmatched mission capabilities for mine countermeasures, hydrographic surveys, intelligence collection, surveillance and electronic warfare.</p>
<p>The REMUS 620 achieved two significant development milestones in 2023 with a successful in-water test in October and first sea test in December.</p>


HII Bags Order to Build a REMUS 620 Unmanned Underwater Vehicle for International Customer, Financial Terms Undisclosed

<p>HII (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) announced the REMUS 130, a new unmanned underwater vehicle (UUV) model based on the highly successful HII REMUS series of UUVs, today at the Oceanology International 2024 conference and exhibition.<br />
&nbsp;</p>
<p>The REMUS 130 is the third generation of REMUS 100 vehicles and is designed to enhance underwater operations with maximum flexibility, advanced capabilities and innovative features, including:</p>
<ul>
<li>A compact, two-person-portable design.</li>
<li>Effortless payload integration.</li>
<li>Operational depths down to 100 meters.</li>
<li>An extended battery life of up to 10 hours for sustained operations with easy field battery change.</li>
</ul>


HII Mission Technologies Unveils New REMUS 130 Unmanned Underwater Vehicle

<p>The Nasdaq 100 closed lower by around 80 points on Monday. Investors, meanwhile, focused on some notable insider trades.</p>
<p>When insiders sell shares, it could be a preplanned sale, or could indicate their concern in the company&rsquo;s prospects or that they view the stock as being overpriced. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.</p>
<p>Below is a look at a few recent notable insider sales. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"><em> Benzinga&#39;s insider transactions </em></a> platform.</p>
<h3><strong>Snap </strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong> Snap Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/snap#NYSE">SNAP</a>) CEO Evan Spiegel <a href="https://www.benzinga.com/sec/insider-trades/"><em> sold a total of 150,000 shares </em></a> at an average price of $11.11. The insider received over $1,666,530 from selling those shares.</li>
<li><strong>What&rsquo;s Happening:</strong> Snap shares announced that it entered into various privately negotiated repurchase transactions.</li>
<li><strong>What Snap Does:</strong> Snap, which refers to itself as a camera company, has one of the most popular social networking apps, Snapchat, in developed regions such as North America and Europe.</li>
</ul>
<p><em>Have a look at our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> </em></p>
<h3><strong>Moelis &amp; Company</strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong> Moelis &amp; Company </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mc#NYSE">MC</a>) Principal Accounting Officer Christopher Callesano <a href="https://www.benzinga.com/sec/insider-trades/"><em> sold a total of 1,040</em></a> at an average price of $53.59. The insider received around $55,734 from selling those shares.</li>
<li><strong>What&rsquo;s Happening:</strong> Moelis posted a narrower-than-expected quarterly loss.</li>
<li><strong>What Moelis &amp; Company Does:</strong> Moelis &amp; Co is an independent investment bank that provides strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds.</li>
</ul>
<h3><strong>American Express </strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong> American Express Company </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axp#NYSE">AXP</a>) Chief Colleague Experience Off Monique Herena <a href="https://www.benzinga.com/sec/insider-trades/"><em> sold a total of 11,242 shares </em></a> at an average price of $208.41. The insider received around $2,342,945 from selling those shares.</li>
<li><strong>What&rsquo;s Happening:</strong> American Express fiscal fourth-quarter revenue 2023 (net of interest expense) grew 11% year-on-year to $15.8 billion, missing the consensus of $16.0 billion. EPS of $2.62 missed the consensus of $2.64.</li>
<li><strong>What American Express Does:</strong> American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products.</li>
</ul>
<h3><strong>Huntington Ingalls Industries </strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong> Huntington Ingalls Industries, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hii#NYSE">HII</a>) Ex VP, President NNS Jennifer R. Boykin <a href="https://www.benzinga.com/sec/insider-trades/"><em> sold a total of 2,176 shares </em></a> at an average price of $272.31. The insider received around $592,556 from selling those shares.</li>
<li><strong>What&rsquo;s Happening:</strong> Huntington Ingalls posted stronger-than-expected earnings for its fourth quarter.</li>
<li><strong>What Huntington Ingalls Does:</strong> Huntington Ingalls Industries is the largest independent military shipbuilder in the U.S., spun off of Northrop Grumman in 2011.</li>
</ul>
<p>&nbsp;</p>
<p>Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/02/37062571/jim-cramer-says-this-construction-giant-is-so-good-and-goes-higher"><em> Jim Cramer Says This Construction Giant Is &#39;So Good&#39; And &#39;Goes Higher&#39; </em></a></p>


<p>JP Morgan  analyst Seth Seifman   maintains Huntington Ingalls Indus (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) with a Overweight and raises the price target from $257 to $288.</p>


JP Morgan Maintains Overweight on Huntington Ingalls Indus, Raises Price Target to $288

<p>Barclays  analyst David Strauss   maintains Huntington Ingalls Indus (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) with a Equal-Weight and raises the price target from $280 to $290.</p>


Barclays Maintains Equal-Weight on Huntington Ingalls Indus, Raises Price Target to $290

<p><strong>Huntington Ingalls Industries Inc</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) reported a fourth-quarter FY23 sales and service revenue increase of 13% year-over-year to $3.18 billion, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/02/g36885208/hii-reports-fourth-quarter-and-full-year-2023-results" rel="noreferrer noopener">consensus of $2.78 billion</a>.</p>
<p>EPS of $6.90 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $4.28</a>. The stock gained after the results.</p>
<p>Operating income jumped to $312 million from $105 million last year, and the margin expanded by 609 bps to 9.8%.</p>
<p>Segment operating income was $330 million (+127.6% Y/Y), and the margin was 10.4%, up 523 bps.</p>
<p><strong>Revenues by segments:</strong>&nbsp;Ingalls Shipbuilding $800 million (+21.6% Y/Y), Newport News Shipbuilding $1.67 billion (+5.1% Y/Y), and Mission Technologies $745 million (+23.8% Y/Y).</p>
<p>Huntington Ingalls&#8217;s operating cash flow for the quarter totaled $562 million, compared to $601 million a year ago.</p>
<p>New contract awards for 2023 were $12.5 billion, bringing the total backlog to approximately $48.1 billion as of December 31, 2023.</p>
<p>&#8220;We continue to invest both in our shipyards and in IRAD to both expand capacity and develop new products and solutions for our customers,&#8221; said Chris Kastner, HII&#8217;s president and CEO. &#8220;Looking ahead, over the next 5 years we expect growth of over 4% and cash generation of $3.6B.&#8221;</p>
<p><strong>FY24 Outlook:</strong>&nbsp;Huntington Ingalls Industries sees Shipbuilding revenue of $8.8 billion-$9.1 billion, and the corresponding operating margin of 7.6%-7.8%</p>
<p>HII sees Mission Technologies revenue of $2.70 billion &#8211; $2.75 billion, with an operating margin of 3.0%-3.5% and Mission Technologies EBITDA margin of 8.0%-8.5%</p>
<p>Huntington Ingalls Industries expects a free cash flow of $600 million-$700 million.</p>
<p>The company expects FY20-FY24 free cash flow of $3.0 billion and&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">FY24-FY28 free cash flow of $3.6 billion.</a></p>
<p><strong>Price Action:</strong>&nbsp;HII shares are trading higher by 1.26% at $262.19 on the last check Thursday.&nbsp;</p>


<table align="center" cellspacing="0" style="width:100%">
<tbody>
<tr>
<td style="text-align:center; vertical-align:bottom; width:25%"><strong>FY24 Outlook</strong><strong>1</strong></td>
</tr>
<tr>
<td style="vertical-align:top">Shipbuilding Revenue2</td>
<td style="text-align:center; vertical-align:top">$8.8B - $9.1B</td>
</tr>
<tr>
<td style="vertical-align:top">Shipbuilding Operating Margin2</td>
<td style="text-align:center; vertical-align:top">7.6% - 7.8%</td>
</tr>
<tr>
<td style="vertical-align:top">Mission Technologies Revenue</td>
<td style="text-align:center; vertical-align:top">$2.7B - $2.75B</td>
</tr>
<tr>
<td style="vertical-align:top">Mission Technologies Segment Operating Margin2</td>
<td style="text-align:center; vertical-align:top">3.0% - 3.5%</td>
</tr>
<tr>
<td style="vertical-align:top">Mission Technologies EBITDA Margin2</td>
<td style="text-align:center; vertical-align:top">8.0% - 8.5%</td>
</tr>
<tr>
		</tr>
<tr>
<td style="vertical-align:top">Operating FAS/CAS Adjustment</td>
<td style="text-align:center; vertical-align:top">($63M)</td>
</tr>
<tr>
<td style="vertical-align:top">Non-current State Income Tax Benefit/Expense4</td>
<td style="text-align:center; vertical-align:top">~$0M</td>
</tr>
<tr>
<td style="vertical-align:top">Interest Expense</td>
<td style="text-align:center; vertical-align:top">($90M)</td>
</tr>
<tr>
<td style="vertical-align:top">Non-operating Retirement Benefit</td>
<td style="text-align:center; vertical-align:top">$178M</td>
</tr>
<tr>
<td style="vertical-align:top">Effective Tax Rate</td>
<td style="text-align:center; vertical-align:top">~21%</td>
</tr>
<tr>
		</tr>
<tr>
<td style="vertical-align:top">Depreciation &amp; Amortization</td>
<td style="text-align:center; vertical-align:top">~$350M</td>
</tr>
<tr>
<td style="vertical-align:top">Capital Expenditures</td>
<td style="text-align:center; vertical-align:top">~5.3% of Sales</td>
</tr>
<tr>
<td style="vertical-align:top">Free Cash Flow2, 3</td>
<td style="text-align:center; vertical-align:top">$600M - $700M</td>
</tr>
</tbody>
</table>


Huntington Ingalls Industries See FY24 Free Cash Flow Of $600-$700M

<p>Huntington Ingalls Indus (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) reported quarterly earnings of $6.90 per share which beat the analyst consensus estimate of $4.28 by 61.21 percent. This is a 124.76 percent increase over earnings of $3.07 per share from the same period last year.  The company reported quarterly sales of $3.18 billion which beat the analyst consensus estimate of $2.78 billion by 14.28 percent.  This is a 12.98 percent increase over sales of $2.81 billion the same period last year.</p>


Huntington Ingalls Indus Q4 EPS $6.90 Beats $4.28 Estimate, Sales $3.18B Beat $2.78B Estimate

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Earnings Scheduled For February 1, 2024

<p>Extended the term of the program from Oct. 31, 2024 to Dec. 31, 2028.</p>


Buybacks

Huntington Ingalls Industries Authorizes $600M Increase In Share Repurchase Program To $3.8B

<p><strong>Huntington Ingalls Indus</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) is set to give its latest quarterly earnings report on Thursday, 2024-02-01. Here's what investors need to know before the announcement.</p>
<p>Analysts estimate that Huntington Ingalls Indus will report an <strong>earnings per share</strong> (EPS) of $4.28. </p>
<p>Huntington Ingalls Indus bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.</p>
<p>New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).</p>
<h3>Past Earnings Performance</h3>
<p>Last quarter the company beat EPS by $0.29, which was followed by a 0.05% increase in the share price the next day.</p>
<p>Here's a look at Huntington Ingalls Indus's past performance and the resulting price change:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q3 2023</strong></th>
<th><strong>Q2 2023</strong></th>
<th><strong>Q1 2023</strong></th>
<th><strong>Q4 2022</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>3.41</td>
<td>3.14</td>
<td>2.90</td>
<td>3.29</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>3.70</td>
<td>3.27</td>
<td>3.23</td>
<td>3.07</td>
</tr>
<tr>
<td><strong>Price Change %</strong></td>
<td>0.05%</td>
<td>0.26%</td>
<td>2.48%</td>
<td>0.4%</td>
</tr>
</tbody>
</table>
</p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1706716853_0.png" alt="eps graph" /></p>
<h3>Stock Performance</h3>
<p>Shares of Huntington Ingalls Indus were trading at $260.32 as of January 30. Over the last 52-week period, shares are up 19.5%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release. </p>
<p><a href="https://www.benzinga.com/quote/HII/earnings"><strong>To track all earnings releases for Huntington Ingalls Indus visit their earnings calendar on our site.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Earnings Outlook For Huntington Ingalls Indus

<p>HII (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) announced today that its Mission Technologies division was awarded a $197 million recompete task order contract to conduct research and development for the Joint Training Synthetic Environment (JTSE), which blends live and virtual training into a single synthetic environment that enables joint force readiness.</p>
<p>Administered by the Joint Staff J7, Deputy Director of Joint Training, HII will develop, maintain, support and provide joint training in a synthetic environment across combatant commands, military service branches, federal agencies, academia, industry and multi-national partners. The JTSE is designed to evolve with changing operational needs, providing accessible exercises that mirror the complexity of real-world scenarios.</p>
<p>"As the battlespace becomes more complex, so does the need for warfighters who are fully equipped to handle any challenge," said Glenn Goodman, president of Mission Technologies' LVC Solutions business group. "We are committed to the development and delivery of a truly integrated, high-fidelity training capability that supports the future fight."</p>
<p>HII was awarded this task order under the Department of Defense Information (DoD) Analysis Center's (IAC) multiple-award contract (MAC) vehicle. IAC MAC task orders are awarded by the U.S. Air Force's 774th Enterprise Sourcing Squadron to develop and create new knowledge for the enhancement of the Defense Technical Information Center repository and the research and development and science and technology community.</p>
<p>An image accompanying this release is available at: <a href="https://www.globenewswire.com/Tracker?data=SLbQTFylCyxWFqsGH4hf9rdAljEyjy8I2F2Qc3Nm2NGtrmOy7SqbfnWCHFq5ONQkoYGxhoOYF9QnIugp5XgXC991ihVc4kKqTU34py3qlgR8-HQD1PZLkEIr9rBF2JTaayYwRaxdRSwTXg7FRv1oCYlY7kSKbYbt4byP24k9r20oxLo-zP6l6P8xHYDLanWGgsy35ufSy3Eqd26JQRpgDuUlOX2S1E5bId96JN5UB3Y=">https://hii.com/news/hii-awarded-joint-force-readiness-contract-2024/</a>.</p>
<p>The task order has a five-year term. Most of the work will be performed in Suffolk, Virginia.</p>
<p>HII's support to the joint staff is an extension of work performed under two previous contracts awarded in August 2020 and March 2018, respectively. HII is the largest provider of secure, realistic networked LVC training environment to the DoD. HII supports both the U.S. Navy and U.S. Air Force in LVC training.</p>


HII Awarded $197M Contract To Support Joint Force Readiness

<p>Barclays downgraded its rating of Huntington Ingalls Indus (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) to Equal-Weight with a price target of $280.00, changing its price target from $250.00 to $280.00.</p>
<p>Shares of Huntington Ingalls Indus are trading down 0.63% over the last 24 hours, at $254.71 per share.</p>
<p>A move to $280.00 would account for a 9.93% increase from the current share price.</p>
<h3>About Huntington Ingalls Indus</h3>
<p>Huntington Ingalls Industries is the largest independent military shipbuilder in the U.S., spun off of Northrop Grumman in 2011. It operates three segments, two of which are historied shipyards: Ingalls produces non-nuclear-powered ships including amphibious landing ships and Arleigh Burke-class destroyers while Newport News produces nuclear-powered ships as the only producer of Gerald Ford-class aircraft carriers and a major subcontractor on Virginia and Columbia-class nuclear submarines. Huntington Ingalls shares production of destroyers and nuclear submarines with General Dynamics' Bath Iron Works and Electric Boat shipyards, respectively. The company's Mission Technologies segment produces uncrewed sea vessels and provides a range of IT and other services to U.S. government agencies.</p>
<h3>About Analyst Ratings</h3>
<p>Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.</p>
<p>Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.</p>
<p>If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along with analyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.</p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Barclays Downgrades Huntington Ingalls Indus: Here's What You Need To Know

<p>Barclays  analyst David Strauss   downgrades Huntington Ingalls Indus (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) from Overweight to Equal-Weight and raises the price target from $250 to $280.</p>


Downgrades

Barclays Downgrades Huntington Ingalls Indus to Equal-Weight, Raises Price Target to $280

<p>HII (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) announced today that its Ingalls Shipbuilding division received a cost-plus-award fee contract from the U.S. Navy for follow yard support of the Navy's <i>Arleigh Burke</i>-class (DDG 51) destroyer program.<br /><br />&nbsp;</p>
<p>This contract, which allows for the continuation of key technical management and support functions that enable coordinated production of DDGs under existing construction contracts, includes four option years with a total potential contract value of $185 million if all options are exercised.</p>
<p>"This is another exciting opportunity for our shipbuilders to demonstrate their versatility in handling all aspects of shipbuilding," Ingalls Shipbuilding DDG 51 Program Manager Ben Barnett said. "We are honored to provide this support to our Navy customer and the nation's defense."</p>
<p><i>Arleigh Burke</i>-class destroyers are highly capable, multi-mission ships and can conduct a variety of operations, from peacetime presence and crisis management to sea control and power projection. Guided missile destroyers are the backbone of the U.S. surface fleet and are capable of fighting multiple air, surface and subsurface threats simultaneously.</p>
<p>A photo accompanying this release is available at: <a href="https://www.globenewswire.com/Tracker?data=_A1fxVMMuyW1vouxWT6gGfXBlXD3NxehguZoKTWBZia20HCSfwklOTunrkx7r4C8UIP8rsYmHnygiQRP1HR6Md97NshKkPIOe28Ur2qo1SR0C7UjIIPrYXEjbDBX-VkU5z3BgmKq5dxp5BcQFHIRPVeD2dUbmysojMNTXdCJilQ7io2MxUh1IlXuA6-YQKkFYB40R2jW-vva1rKrosIbEzTWd5RCwqa7IySO7howsrU=">https://hii.com/news/hii-ddg-51-class-follow-yard-support-award-2023/</a></p>
<p>&nbsp;</p>


HII Is Awarded ~$185M Contract For DDG 51-Class Follow Yard Support

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Huntington Ingalls: Defense Stock For Moat Seekers

In a report released yesterday, Douglas Harned from Bernstein maintained a Hold rating on Huntington Ingalls (HII – Research Report), with a price ...

Huntington Ingalls (HII) Receives a Hold from Bernstein

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Are we headed for a repeat of 2022&rsquo;s brutal selloff? While no one can predict the future with certainty, current market trends are raising some ominous red flags. After a meteoric rally fueled by the AI craze, many investors seem to be taking profits off the table. And who can blame them? The surge we&rsquo;ve witnessed is eerily reminiscent of the 2021 rally.</p>



<p>And let&rsquo;s not forget the potential domino effect for certain sectors. With tech and <a href="https://investorplace.com/industries/technology/artificial-intelligence/">AI stocks</a> commanding such hefty weightings in the major indexes, a selloff in these sectors could drag the broader market down&nbsp;with it. Some even fear such a selloff could induce a full-blown&nbsp;recession,&nbsp;as panic-stricken companies scramble to beat Wall Street&rsquo;s estimates in a desperate bid to revive their share prices.</p>



<p>Of course, this could&nbsp;just&nbsp;be a temporary 10% hiccup, akin to the summer 2023 correction we weathered. But if you&rsquo;re keen on protecting those hard-earned gains, it might be wise to shift into a defensive stance &ndash; at least for&nbsp;the time being. Here are seven defensive stocks worth considering as you batten down the hatches.</p>



<h2>McDonald&rsquo;s (MCD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/02/mcd1600-1-300x169.png" alt="New McDonalds Being Built in 2020, Close Up of Main McD Sign"><div>Source: Retail Photographer / Shutterstock.com</div></div><p><strong>McDonald&rsquo;s</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/mcd-stock-quote/"><strong>MCD</strong></a>) is a defensive stock that should be on every investor&rsquo;s radar, especially if&nbsp;we&rsquo;re headed&nbsp;for a market downturn. This fast-food titan has some of the stickiest demand&nbsp;out there&nbsp;&ndash; an impressive feat for a restaurant company where demand is typically cyclical.</p>



<p>Indeed, McDonald&rsquo;s has defied the odds time and again. The company <a href="https://www.forbes.com/2009/02/17/mcdonalds-recession-stock-intelligent-investing_0217_mcdonalds.html?sh=301b7431bd72">delivered solid returns even during the Great Recession</a>, barely taking a scratch during the COVID pandemic, bouncing back faster than most. The fact that McDonald&rsquo;s managed to deliver good performance even when restaurants were shutting down worldwide is a testament to the resilience of its business model. If there&rsquo;s a recession strong enough to knock down McDonald&rsquo;s, the stock market might be the least of your concerns.</p>



<p>What&rsquo;s more, McDonald&rsquo;s boasts a <a href="https://www.gurufocus.com/term/net-margin/MCD">stellar 33% net margin</a>, better than 98% of the restaurant industry. With a 3-year revenue growth rate of nearly 11%, this mature company is one of the best performers in its space. The stock&rsquo;s forward dividend yield of 2.4% sweetens the deal even further, providing a nice income stream to cushion any potential volatility. In short, McDonald&rsquo;s is one of the top defensive stocks that should be a core holding in any downturn-proof portfolio.</p>



<h2>Huntington&nbsp;Ingalls Industries (HII)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/11/hii1600-300x169.png" alt="Person holding smartphone with logo of US company Huntington Ingalls Industries Inc (HII) on screen in front of website Focus on phone display"><div>Source: Wirestock Creators / Shutterstock.com</div></div><p><strong>Huntington Ingalls Industries</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/hii-stock-quote/"><strong>HII</strong></a>) is the largest military shipbuilding company in the United States. This global, all-domain defense provider also offers professional services to partners in government and industry. And here&rsquo;s the kicker &ndash; Huntington builds ships in more classes than any other U.S. naval shipbuilder.</p>



<p>If there&rsquo;s one thing you should know, it&rsquo;s that government contracts are some of the stickiest sources of revenue out there. Huntington Ingalls has big money locked down in a very lucrative industry. And with China ramping up its naval military production way beyond the U.S., I see the military shipbuilding space heating up even more. I doubt military spending would slow even if a&nbsp;bad&nbsp;recession takes place, given the hot geopolitical environment. </p>



<p>So,&nbsp;you&nbsp;can expect HII stock to keep delivering consistent, safe returns.&nbsp;The company&rsquo;s 1.9% dividend yield also makes it worthwhile to hold the stock,&nbsp;despite its lack of flashiness.&nbsp;However, if a war&nbsp;breaks out&nbsp;that requires substantial naval power, expect the company&rsquo;s growth to get&nbsp;a lot&nbsp;flashier.</p>



<h2>Flowers Foods (FLO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/05/bakery-bread-1600-300x169.jpg" alt="bakery breads, buns and pastries on a wooden cutting board in a display case"><div>Source: shutterstock.com/ampersandphoto</div></div><p><strong>Flowers Foods</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/flo-stock-quote/"><strong>FLO</strong></a>) is one of my favorite defensive stocks for reliable long-term returns. The trajectory of this stock over the past two years has been essentially unbroken, and despite a recent correction, it&rsquo;s back to compounding again. It&rsquo;s a lot like McDonald&rsquo;s in the sense that it&rsquo;s a discretionary name, but the demand here is&nbsp;very&nbsp;sticky and growing steadily. It&rsquo;s unlikely to disappoint from these levels.</p>



<p>Flower Foods&rsquo; dividend yield of 3.7% is&nbsp;also especially&nbsp;juicy here. I don&rsquo;t see massive swings in either direction for this stock, but the main aim of this article is to find stable picks, and this one is&nbsp;definitely&nbsp;not going much further down from current levels. You&rsquo;re paying just 20-times earnings and&nbsp;1-times forward sales for one of the most stable companies with&nbsp;big&nbsp;dividend payouts. Moreover, we could see earnings climb&nbsp;substantially&nbsp;once rates&nbsp;are cut, as this company <a href="https://investors.flowersfoods.com/~/media/Files/F/Flowers-Foods-V3/documents/events/Q4-2023/Q4-2023-Release.pdf">spends a lot of money on interest payments</a>.</p>



<h2>Colgate-Palmolive (CL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/05/colgate-cl-stock-1600-300x169.jpg" alt="Colgate toothpaste and mouthwash in a cup with a toothbrush"><div>Source: monticello / Shutterstock.com</div></div><p><strong>Colgate-Palmolive</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/cl-stock-quote/"><strong>CL</strong></a>) needs no introduction &ndash; it&rsquo;s a household name synonymous with reliable, recession-proof products. This consumer staples giant has some of the stickiest demand out there, unlikely to be knocked down by any economic downturn. The company offers stability and reliability in a volatile market, with a wide portfolio of products that people buy regardless of market conditions.</p>



<p>The stock&rsquo;s chart is about as boring as it gets if you zoom out, and that&rsquo;s precisely what you want during turbulent times. Even though Colgate has delivered some solid gains recently, I expect it to remain a steady&nbsp;Eddie&nbsp;going forward. This is exactly the kind of stock you&rsquo;d want to hold during a downturn. Just sit on that 2.26% dividend yield and let it compound while most other stocks shave a third of their value. You could then emerge from that storm as a winner. </p>



<p>Sure, the company&rsquo;s dividend growth has been weak, but Colgate remains a reliable source of income with over 60 years of consecutive raises.</p>



<h2>Cardinal Health (CAH)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/cah-stock-1-300x169.jpg" alt="Cardinal Health (CAH) sign with bushes in front of it"><div>Source: Shutterstock</div></div><p><a href="https://investorplace.com/industries/healthcare/">Healthcare stocks</a> like <strong>Cardinal Health</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/cah-stock-quote/"><strong>CAH</strong></a>) are unavoidable if you&rsquo;re looking to build a stable portfolio. These companies have incredibly sticky demand, as health is not something you can compromise on. Moreover, American healthcare is notorious for being expensive, and domestic companies have immense pricing power that&rsquo;s not hugely restricted by the government. Cardinal Health has almost doubled since early 2022, and while the stock has seen downturns historically, those dips weren&rsquo;t drastic, and the company recovered quickly.</p>



<p>You&rsquo;re&nbsp;definitely&nbsp;paying a premium for this stock, but the company&rsquo;s execution is worth the price tag. Cardinal is <a href="https://seekingalpha.com/symbol/CAH/earnings/estimates">expected to see 10.4% revenue growth</a> and 26% earnings per share growth in 2024, and the stock has a forward dividend yield of 1.95%. All of that for just 14-times forward earnings is still very attractive, especially when you consider the company&rsquo;s neutral balance sheet.</p>



<h2>Dollar General (DG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/dg1600-300x169.jpg" alt="Dollar General (DG) store front with yellow store sign, midday"><div>Source: Jonathan Weiss / Shutterstock.com</div></div><p>I&rsquo;ve been pounding the table on <strong>Dollar General</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/dg-stock-quote/"><strong>DG</strong></a>) for quite some time after its plunge. It&rsquo;s the only stock on this list that has declined considerably. However, I still call it one of the safest bets right now because of that very decline. The stock is unlikely to go down much further, and a recovery has already started to take shape.&nbsp;In fact,&nbsp;I believe multi-bagger returns are possible here within a decade if you buy at current levels.</p>



<p>The expectations going forward can be described as pitiful, and we all know that established retail companies hardly disappoint when consumer confidence and spending inevitably bounce back and the company&rsquo;s stock returns to a fairer valuation. Dollar General also has a 1.65% forward dividend yield, so you&rsquo;ll be rewarded for holding it through the storm. <em>Gurufocus&rsquo; </em>model puts the <a href="https://www.gurufocus.com/stock/DG/summary">fair value for the stock at $272</a> right now. The stock currently trades at a paltry $143.</p>



<h2>Otis Worldwide (OTIS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/construction-2-300x169.jpg" alt="stocks to buy: construction workers work on a concrete floor"><div>Source: Shutterstock</div></div><p><strong>Otis Worldwide</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/otis-stock-quote/"><strong>OTIS</strong></a>) is a company that makes escalators, moving walkways, and other vertical transportation equipment. The stock doesn&rsquo;t have much of a history since the company went public fairly recently in 2020. However, I believe this company has the ingredients to remain a sticky business even during tough times.</p>



<p>Otis has strong underlying growth drivers, driven by an extensive portfolio of elevator units that could drive multiple expansion in the years ahead. We&rsquo;re looking at a very stable <a href="http://seekingalpha.com/symbol/OTIS/earnings/estimates">10% annual earrings growth going forward</a>, along with 4% annual revenue growth. There&rsquo;s also a 1.4% forward dividend yield to consider. </p>



<p>It&rsquo;s important to remember that elevator companies like Otis not only generate revenue from new elevator sales; they&rsquo;re also needed for routine upkeep of the huge amount of elevator units they operate. This leads to a very good base of recurring revenue that&rsquo;ll keep the business running during tough times.</p>



<p><em>On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines.</a></em></p>
<div><p>Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on <a href="https://www.linkedin.com/in/omor-ibne-ehsan-56068022b/">LinkedIn</a>.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/a-repeat-of-2022-7-defensive-stocks-to-buy-before-the-correction/">A Repeat of 2022? 7 Defensive Stocks to Buy Before the Correction.</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

A Repeat of 2022? 7 Defensive Stocks to Buy Before the Correction.

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>With the recent passage of a <a href="https://www.reuters.com/world/us/us-house-vote-long-awaited-95-billion-ukraine-israel-aid-package-2024-04-20/">$95 billion military aid</a> bill to help Ukraine, Israel and Taiwan and expectations of increased global defense spending driven by <a href="https://www.dw.com/en/global-military-spending-soars-to-new-record-highs/a-68876104">geopolitical tensions</a>, it is a suitable time to look into some <a href="https://investorplace.com/industries/industrial/defense/">defense stocks</a>.</p>



<p>The White House and Congress are currently working on the fiscal year <a href="https://www.reuters.com/world/us/bidens-meager-1-us-defense-budget-increase-buys-fewer-ships-jets-2024-03-11/">2025 defense budget</a>, which some estimates suggest could reach $900 billion. In ongoing discussions, the Pentagon appears focused on developing missiles like the <em>PrSM</em> to replace <em>ATACM</em> and <em>LRASM</em> for naval targeting, both produced by <strong>Lockheed Martin</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/lmt-stock-quote/"><strong>LMT</strong></a>). However, budget constraints may lead to <a href="https://www.defensenews.com/air/2024/02/29/singapore-to-buy-eight-f-35-jets-raise-defense-budget/">reduced F-35 orders</a> despite foreign acquisitions, affecting the defense stock.</p>



<p>In recent years, substantial defense spending increases overseas in Europe have led to <a href="https://www.euronews.com/business/2024/04/11/defence-stocks-take-a-dive-why-are-traders-nervous-about-their-record-run">surges in European </a>defense stocks. But more recently, performance has lagged despite market gains, as analysts question whether defense stocks have become overvalued. This follows challenges at larger U.S. firms, such as <strong>Boeing </strong>(NYSE:<a href="https://investorplace.com/stock-quotes/ba-stock-quote/"><strong>BA</strong></a>), facing aircraft construction quality issues unrelated to its defense divisions.</p>



<p>Given fluid spending and tensions, defense stocks that are not necessarily top of mind for investors may have advantages if their outlays address diverse emerging challenges.</p>



<h2><strong>Booz Allen Hamilton (BAH)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/10/bah-stock-1-300x169.jpg" alt="Booz Allen Hamilton (BAH) logo on a corporate building"><div>Source: Jer123 / Shutterstock.com</div></div><p><strong>Booz Allen Hamilton</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/bah-stock-quote/"><strong>BAH</strong></a>) could be an example of one of the defense stocks that may benefit from increased spending. However, it may not be the first obvious choice for investors seeking direct exposure to the sector. As a provider of engineering, analytics consulting, and digital solutions for mission operations, BAH&rsquo;s services include cybersecurity, a crucial area for government clients as civilian and military networks are further hardened.</p>



<p>With the White House advocating for a <a href="https://www.nextgov.com/cybersecurity/2024/03/biden-seeks-10-bump-civilian-cybersecurity-spending-fy25/395121/">10% boost in cybersecurity</a> outlays for the upcoming fiscal year, opportunities may arise for defense stocks operating in this domain. In April, Booz Allen partnered with <strong>Cloudflare </strong>(NYSE:<a href="https://investorplace.com/stock-quotes/net-stock-quote/"><strong>NET</strong></a>) to provide immediate <a href="https://finance.yahoo.com/news/cloudflare-net-booz-allen-team-125900446.html">cybersecurity threat response</a> to organizations facing DDoS and ransomware attacks, building a stronger case for the stock. Analyst coverage on BAH also remains consistently positive, with recommendations centered around maintaining or building a position targeting a 12-month <a href="https://finance.yahoo.com/quote/BAH/analysis">price of $156.61</a> per share.</p>



<h2><strong>Huntington Ingalls (HII)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/11/hii1600-300x169.png" alt="Person holding smartphone with logo of US company Huntington Ingalls Industries Inc (HII) on screen in front of website Focus on phone display"><div>Source: Wirestock Creators / Shutterstock.com</div></div><p>The leading U.S. military shipbuilder <strong>Huntington Ingalls</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/hii-stock-quote/"><strong>HII</strong></a>) represents a prominent investment opportunity in defense stocks. As the foremost builder of America&rsquo;s nuclear-powered aircraft carriers, it is a mainstay for those seeking direct exposure to the defense sector. Aircraft carriers are critical for power projection into strategically important regions like the Red Sea and <a href="https://edition.cnn.com/2024/02/01/asia/us-aircraft-carriers-taiwan-china-intl-hnk-ml/index.html">supporting allies</a> like Taiwan. This means they remain a priority amid debates around other defense programs. HII also manufactures the new Columbia-class ballistic missile submarines slated to <a href="https://www.navalnews.com/naval-news/2023/04/hii-is-awarded-contract-modification-for-columbia-class-ssbns/">replace the Ohio-class vessels</a> over the next ten years.</p>



<p>The stock trades at a relatively modest price-to-earnings <a href="https://finance.yahoo.com/quote/HII?.tsrc=fin-srch">(P/E) ratio of 16.1x</a>, below the broader<strong> S&amp;P 500 </strong>index&rsquo;s current <a href="https://www.multpl.com/s-p-500-pe-ratio">P/E ratio of 27.2x</a>. This represents a more affordable valuation for those interested in adding defense stocks to their portfolio. Beating estimates would solidify the defense stock position as a shipbuilding leader and mark its 5th consecutive EPS beat. In addition, the company offers a dividend yield of 1.89%, paid out in March, and has a 12-year increase record.</p>



<h2><strong>Howmet Aerospace (HWM)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/defense1600-300x169.jpg" alt="7 Defense Stocks to Buy to Fortify Your Portfolio"><div>Source: Shutterstock</div></div><p>Given the low-profile nature of its operations, aviation supply company <strong>Howmet Aerospace</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/hwm-stock-quote/"><strong>HWM</strong></a>) may not be at the top of many investors&rsquo; minds looking for defense stocks. The company manufactures high-precision components for applications such as jet engines and forged aircraft wheels. It also offers metal management consulting services and expertise to defense sector clients. Increased orders for commercial aircraft and greater military aircraft utilization requiring more frequent parts replacements could benefit the business.</p>



<p>Analyst coverage remains optimistic for the company&rsquo;s potential to leverage its core offering to <a href="https://www.fitchratings.com/research/corporate-finance/fitch-upgrades-howmet-aerospace-to-bbb-outlook-stable-23-08-2023">improve pricing</a> during the current upcycle following the spin-off from <strong>Arconic </strong>(NYSE:<a href="https://investorplace.com/stock-quotes/arnc-stock-quote/"><strong>ARNC</strong></a>). The company has achieved EPS growth of 24% per year over the last five years, offering stability through the alignment of the average annual increase in the share price. Shareholders have received a total <a href="https://finance.yahoo.com/news/howmet-aerospaces-nyse-hwm-investors-134405073.html">return of 70%</a> over last year alone, with a consensus price target of $73 per share, representing a double-digit upside from current levels.</p>



<p><em>On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em> </em></a><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em>Publishing Guidelines</em></a>.</p>
<div><p>Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/three-defense-stocks-primed-to-dominate-the-market/">Battlefield Bargains: 3 Defense Stocks Primed to Dominate the Market</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Battlefield Bargains: 3 Defense Stocks Primed to Dominate the Market

ADBE

ADSK

ATRO

BIIB

BMYMP

BWXT

CACI

CARR

CHRW

CMCSA

CTVA

ENPH

ETSY

FLNC

FSLR

GILD

KVUE

LDOS

MDLZ

MKTX

MRCY

OTIS

RLXXF

SAIC

SBUX

SEDG

TTMI

VEEV

VRSN

VTSI

Press Releases

General

HII Hosts USMC Officers at Ingalls Shipbuilding

HII Co-Hosts Acceleration Summit & Manufacturing Showcase at Newport News Shipbuilding

HII Celebrates 2023 Graduates of The Newport News Shipbuilding Apprentice School

HII Connects Sea-Air-Space Expo 2024 Attendees; Highlights Strides at the Intersection of Platforms, Technologies and People

HII to Host First Quarter Earnings Conference Call and Webcast on May 2

HII Completes Dry Dock Work for Aircraft Carrier USS John C. Stennis (CVN 74) Refueling and Complex Overhaul

HII is Awarded $74 Million Contract to Support U.S. Navy Vertical Launch Systems

HII Awarded as One of 2024's Best Employers for Excellence in Health & Well-Being

HII Delivers Amphibious Transport Dock Richard M. McCool Jr. (LPD 29) to U.S. Navy