HII Stock Surges 19% With A 7-day Winning Spree On Citi Price Target Hike
Huntington Ingalls Industries (HII) – a builder and repairer of military and nuclear ships – hit 7-day winning streak, with cumulative gains over this period amounting to a 19%. The company market cap has surged by about $2.7 Bil over the last 7 days, and currently stands at $17 Bil.
The stock has YTD (year-to-date) return of 25.2% compared to 1.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Citigroup Price Target Increase to $450
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- Citigroup raised its price target from $376 to $450 with a “buy” rating
- Melius upgraded the stock to “buy” on January 5th
- Impact: Strengthened Investor Confidence, Increased Buying Pressure
[2] Missile Defense Agency’s SHIELD Contract Award
- Awarded contract with a ceiling value of up to $151 billion
- Proposal to significantly increase the U.S. military budget for 2027
- Impact: Heightened Institutional Interest, Bullish Sector Sentiment
Opportunity or Trap?
Below is our take on valuation.
There are several things to fear in HII stock given its overall Weak operating performance and financial condition. In addition, keeping in mind its High valuation, we think that the stock is Unattractive (For details, see Buy or Sell HII).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for HII stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | HII | S&P 500 |
|---|---|---|
| 1D | 1.7% | -0.1% |
| 7D (Current Streak) | 19.5% | 0.3% |
| 1M (21D) | 30.3% | 2.1% |
| 3M (63D) | 51.3% | 4.7% |
| YTD 2026 | 25.2% | 1.4% |
| 2025 | 84.2% | 16.4% |
| 2024 | -25.7% | 23.3% |
| 2023 | 15.2% | 24.2% |
However, big gains can follow sharp reversals – but how has HII behaved after prior drops? See HII Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 102 S&P constituents with 3 days or more of consecutive gains and 49 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 38 | 16 |
| 4D | 17 | 11 |
| 5D | 22 | 12 |
| 6D | 0 | 5 |
| 7D or more | 25 | 5 |
| Total >=3 D | 102 | 49 |
Key Financials for Huntington Ingalls Industries (HII)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $11.5 Bil | $11.5 Bil |
| Operating Income | $744.0 Mil | $486.0 Mil |
| Net Income | $681.0 Mil | $550.0 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ1 | 2025 FQ2 |
|---|---|---|
| Revenues | $2.7 Bil | $3.1 Bil |
| Operating Income | $148.0 Mil | $155.0 Mil |
| Net Income | $149.0 Mil | $152.0 Mil |
While HII stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.