Back to top

Image: Bigstock

Huntington Ingalls (HII) Surges 9.3%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Huntington Ingalls (HII - Free Report) shares soared 9.3% in the last trading session to close at $221.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4% loss over the past four weeks.

The recent attack made by Palestine’s Hamas group on Israel and the following retaliatory strike from the Israeli military in Gaza has once again created a war zone the Middle East. Such conflicts tend to boost investors’ confidence in defense stocks, which in turn must have resulted in the latest uptick in HII’s share price.

This shipbuilder is expected to post quarterly earnings of $3.44 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $2.74 billion, up 4.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Huntington Ingalls, the consensus EPS estimate for the quarter has been revised 0.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HII going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Huntington Ingalls belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, RTX (RTX - Free Report) , closed the last trading session 4.6% higher at $72.99. Over the past month, RTX has returned -16.4%.

RTX's consensus EPS estimate for the upcoming report has changed +0.6% over the past month to $1.19. Compared to the company's year-ago EPS, this represents a change of -1.7%. RTX currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Huntington Ingalls Industries, Inc. (HII) - free report >>

RTX Corporation (RTX) - free report >>

Published in