Huntington Ingalls Indus Stock (NYSE: HII)

Huntington Ingalls Indus (NYSE:HII) Stock, Quote.Headers.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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General Dynamics Corp.&#39;s (NYSE: GD) business unit, Bath Iron Works, recently clinched a contract to provide planning yard services for its DDG 51 guided-missile destroyer ships. The award has been offered by the Naval Sea Systems Command, Washington, D.C.

General Dynamics Wins $203M Contract for DDG 51 Combat Ships

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Huntington Ingalls Industries reports lower first-quarter FY24 results with increased sales and service revenue, beating consensus.

Why Defense Company Huntington Ingalls Shares Are Diving Today

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>HII's Mission Technologies division was awarded a $65 million task order to perform high-quality, specialized research and analysis for the Joint Staff J7, Deputy Director, Joint Warfighting Development.<br /><br />&nbsp;</p>
<p>HII will support research and analysis in three areas. The first will focus on futures and concepts, to include developing a comprehensive view of the future operating environment. The second will focus on joint experimentation, to include informing and facilitating joint war gaming and integrated learning opportunities. The third will focus on wargaming for the Joint Staff J4 Logistics enterprise.</p>


Contracts

HII Awarded $65M Contract For The Joint Staff J7, Deputy Director, Joint Warfighting Development.

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Shares of companies within the broader industrial sector are trading higher following Core Retail Sales and Retail Sales economic data. Also, strength may be due to trader optimism that the Fed will cut rates.

<p><strong>General Dynamics Corp.</strong>&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gd#NYSE">GD</a>) business unit, Bath Iron Works, recently clinched a contract to provide planning yard services for its DDG 51 guided-missile destroyer ships. The award has been offered by the Naval Sea Systems Command, Washington, D.C.</p>
<h3>Details of the Deal</h3>
<p>Valued at $202.7 million, the contract is expected to be completed by Jul 31, 2029. Work related to this deal will be carried out in Bath, ME.</p>
<p>The options included in this contract, on being exercised, should bring the cumulative value of this contract to $1.13 billion.</p>
<h3>What&#39;s Favoring General Dynamics?</h3>
<p>Nations across the globe are fortifying their defense spending on military weapons and arsenals as they look to strengthen their defense capabilities. This also includes augmented spending on navy ships for enhanced sea warfare capabilities.</p>
<p>Such increased spending tends to benefit General Dynamics, with its Bath Iron Works business unit being an expert in manufacturing navy ships and providing modernization and lifecycle support for the U.S. Navy.</p>
<p>Notably, General Dynamics&#39; DDG-51 Arleigh Burke-class guided-missile destroyers witness significant demand owing to their wide range of advanced warfighting capabilities in multi-threat air, surface and subsurface environments. These also offer protection against a wide range of threats, including ballistic missiles. Their strong demand is evident from the fact that in 2023, the company won a contract from the Navy for the construction of three Flight III DDG-51 destroyers, with a total of 12 ships in backlog (scheduled for delivery through 2032).</p>
<p>Such strong demand, in tandem with excellence in providing unique capabilities in shipbuilding, must have been boosting GD&#39;s order flows, like the latest one.</p>
<h3>Growth Prospects</h3>
<p>As demand for an efficient security system that can strengthen naval sea warfare capabilities rises, so does the prospect of the naval ship market. This must have encouraged the Mordor Intelligence firm to project that the global naval combat vessels market will witness a CAGR of 6.5% during the 2024-2029 period.</p>
<p>This growth opportunity should boost General Dynamics&#39; operating results as it is one of the prime contractors of navy ships. Notably, GD&#39;s Marine Systems segment is the leading designer and builder of surface combatant and auxiliary ships for the U.S. Navy. The segment also provides comprehensive post-delivery services to modernize and extend the service life of Navy ships. It also maintains the most sophisticated marine engineering expertise in the world to support future capabilities.</p>
<p>Such expertise of GD in manufacturing, as well as providing valuable services for naval combat ships, should usher in more order flows for the company, backed by the growing demand in the naval combat vessels market, like the latest one. Such contract wins should boost GD&#39;s revenue generation prospects in the coming years.</p>
<h3>Peer Opportunities</h3>
<p>GD apart, other defense majors poised to benefit from the expanding naval combat vessels market, on virtue of their strong presence in this space, are discussed below:</p>
<p><strong>BAE Systems</strong> (OTC: <a class="ticker" href="https://www.benzinga.com/stock/baesy#OTC">BAESY</a>): It designs, builds, commissions, repairs and supports a full range of complex naval ships, from offshore patrol vessels to aircraft carriers. Its Queen Elizabeth Class Aircraft Carriers are the largest warships ever constructed in the United Kingdom.</p>
<p>BAESY boasts a long-term earnings growth rate of 12.2%. The Zacks Consensus Estimate for BAE Systems&#39; 2024 sales indicates growth of 34.1% from the 2023 level.</p>
<p><strong>Lockheed Martin</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lmt#NYSE">LMT</a>): The company manufactures Littoral Combat Ships (LCS). Its freedom-variant LCS, USS Nantucket (LCS 27), is a resilient, flexible warship designed to encounter the evolving missions of the U.S. Navy.</p>
<p>Lockheed&#39;s long-term earnings growth rate is 4.1%. The Zacks Consensus Estimate for LMT&#39;s 2024 sales implies an improvement of 3.2% from the 2023 figure.</p>
<p><strong>Huntington Ingalls Industries</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hii#NYSE">HII</a>): Its business segment designs and constructs non-nuclear ships for the U.S. Navy and the U.S. Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants and national security cutters.</p>
<p>Huntington&#39;s long-term earnings growth rate is 7.2%. The Zacks Consensus Estimate for HII&#39;s 2024 sales indicates an increase of 2% from the year-earlier level.</p>
<h3>Price Performance</h3>
<p>Shares of General Dynamics have risen 42.9% in the past year against the industry&#39;s 10.4% decline.</p>
<p><img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/e7/69290.jpg?v=1401938443" /><br />
Image Source: Zacks Investment Research</p>
<h3>Zacks Rank</h3>
<p>General Dynamics currently carries a Zacks Rank #3 (Hold).</p>
<p><a href="https://www.zacks.com/stock/news/2291563/general-dynamics-gd-wins-203m-contract-for-ddg-51-combat-ships?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2291563">To read this article on Zacks.com click here.</a></p>


<p>Citigroup  analyst Jason Gursky   initiates coverage on Huntington Ingalls Indus (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) with a Buy rating and announces Price Target of $310.</p>


Price Target

Initiation

Citigroup Initiates Coverage On Huntington Ingalls Indus with Buy Rating, Announces Price Target of $310

<p>The most oversold stocks in the industrials sector presents an opportunity to buy into undervalued companies.</p>
<p>The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi">RSI is below 30</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.</p>
<p>Here's the latest list of major oversold players in this sector, having an RSI near or below 30.</p>
<p><strong>Advent Technologies Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADN#NASDAQ">ADN</a>)</strong></p>
<ul>
<li>On May 1, Advent Technologies approved a 1-for-30 reverse stock split. The company's stock fell around 46% over the past month and has a <a href="https://www.benzinga.com/quote/ADN">52-week low of $0.1020</a>.</li>
<li><strong>RSI Value:</strong> 24.62</li>
<li><strong>ADN Price Action:</strong> Shares of Advent Technologies rose 0.2% to close at $0.1035 on Tuesday.</li>
</ul>
<h3 class="wp-block-heading"><strong>Cadre Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CDRE#NYSE">CDRE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong></h3>
<ul>
<li>On May 7, the company posted net sales of $137.9 million for the first quarter. &#8220;Building on a year of record net sales and Adjusted EBITDA, we continued to successfully increase net sales and gross margin sequentially and year over year,&#8221; said Warren Kanders, CEO and Chairman. The company's stock fell around 4% over the past month. It <a href="https://www.benzinga.com/quote/CDRE">has a 52-week low</a> of $19.13.</li>
<li><strong>RSI Value:</strong> 20.34</li>
<li><strong>CDRE Price Action:</strong> Shares of Cadre Holdings fell 0.7% to close at $34.35 on Tuesday.</li>
</ul>
<h3 class="wp-block-heading"><strong>Huntington Ingalls Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>)</strong></h3>
<ul>
<li>On May 2, Huntington Ingalls reported first-quarter FY24 results. Sales and service revenue increased 4.9% Y/Y to $2.81 billion, beating the consensus of $2.79 billion. "Strong growth in Mission Technologies and stable shipbuilding progress provide a solid foundation for the balance of 2024 and beyond." said Chris Kastner, president and CEO. The company's shares fell around 11% over the past five days and has a 52-week <a href="https://www.benzinga.com/quote/HII">low of $194.17</a>.</li>
<li><strong>RSI Value:</strong> 23.72</li>
<li><strong>HII Price Action:</strong> Shares of Huntington Ingalls rose 0.8% to close at $248.57 on Tuesday.</li>
</ul>
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<p>HII, the leading manufacturer of underwater unmanned vehicles (UUVs), announced the recent sale of three REMUS 100s and five REMUS 300s to the Royal Navy.<br /><br />&nbsp;</p>
<p>This transaction marks a significant milestone in the longstanding partnership between HII and the United Kingdom military to support the Royal Navy's capabilities in underwater exploration, countermine and surveillance programs.</p>
<p>Over the past 20 years, the U.K.'s Ministry of Defence has acquired a mix of REMUS 100s, Remus 300s and REMUS 600s for mine countermeasure operations.</p>
<p>The Ministry of Defence's first two REMUS 100s, acquired in 2001, are still in operation today, demonstrating the resilience and modernization capabilities of the HII-built UUVs.</p>
<p>The REMUS 100s and 300s, known for their versatility and reliability, are set to enhance the Royal Navy's operational efficiency for a variety of maritime missions. These UUVs are equipped with advanced sensors and systems, enabling them to perform a wide range of tasks, from reconnaissance to mine countermeasures.</p>
<p>Duane Fotheringham, president of Mission Technologies' Unmanned Systems business group, stated, "We are honored to support the Royal Navy in their mission to maintain maritime security. The trust placed in our REMUS vehicles by the United Kingdom and other allies is a testament to the quality and reliability of our technology. We look forward to further strengthening our partnerships and contributing to global maritime safety."<br /><br />&nbsp;</p>
<p>A photo accompanying this release is available at: <a href="https://www.globenewswire.com/Tracker?data=v9tNLsr8DXpGEY342OOqChFReAeRyTYAeCsPm6iN4Fu__eYFAR8kVbX6hlOoRdDlrMGG7p4acahHbqU0OCx33DgcirdLAXUC7Q9R-_c-qv2e-Gr_AYAwOnEzHURqGhP4Jo0LIywA6IWcNVS8fTgeYVS5C30wSXE2Tj5_-gPHhOj6yydvgNIpFIOX_GstmdLPiPFAE5qjsB2HazEPg3Nxj4RnkMw1EpqopWZIMrcfMfs=">https://hii.com/news/hii-royal-navy-REMUS-unmanned-vehicle-acquisition/</a>.</p>
<p>The sale of REMUS 100s and 300s to the Royal Navy follows a history of successful collaborations between HII, the U.S. Navy, and U.S. allies around the world, with REMUS UUVs being widely used by NATO members.</p>
<p>HII has sold more than 600 UUVs to 30 countries worldwide, including 14 NATO member countries like the U.K.</p>
<p>Recent HII REMUS milestones:</p>
<ul>
<li><strong>March 2024</strong>: HII announced the sale of a REMUS 620 UUV to an international customer in the Indo-Pacific Region.</li>
<li><strong>December 2023</strong>: The U.S. Navy announced the first end-to-end submarine torpedo tube launch and recovery of a REMUS UUV using the Yellow Moray system. This capability to deploy a drone through a torpedo tube creates new opportunities for surveillance, reconnaissance and other missions.</li>
<li><strong>October 2023</strong>: HII announced the award of a contract to build nine small UUVs for the U.S. Navy's Lionfish System program. The contract has since grown to 42 vehicles and has the potential to grow to as many as 200 over the next five years with a total value of more than $347 million.</li>
<li><strong>September 2022</strong>: HII delivers three REMUS 100 UUVs to the United Kingdom's Royal Navy. The new systems provide enhanced endurance and the latest generation of sensors and payloads, allowing for increased data quality and mission efficiency.</li>
<li><strong>August 2022</strong>: The Royal New Zealand Navy received delivery of four REMUS 300 UUVs for use in mine countermeasure and survey operations.</li>
</ul>


HII Announces The Recent Sale Of Three REMUS 100s And Five REMUS 300s To The Royal Navy; No Financial Terms Disclosed

<p><strong>Huntington Ingalls Industries Inc&nbsp;</strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) shares are trading lower after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/g38578135/hii-reports-first-quarter-2024-results" rel="noreferrer noopener">first-quarter FY24&nbsp;results</a>.</p>
<p>Sales and service revenue increased 4.9% Y/Y to $2.81 billion, beating the&nbsp;consensus of $2.79 billion.</p>
<p><strong>Revenues by segments:</strong>&nbsp;Ingalls Shipbuilding $655 million (+13.5% Y/Y), Newport News Shipbuilding $1.43 billion (-4.8% Y/Y) and Mission Technologies $750 million (+20.2% Y/Y).</p>
<p>EPS of $3.87, up 19.8% Y/Y, beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $3.49</a>.&nbsp;</p>
<p>Operating income increased 9.2% Y/Y to $154 million, and the margin expanded by 22 bps Y/Y to 5.5%.</p>
<p>Segment operating income was $170 million (+9.0% Y/Y), and the margin was 6.1%, up 23 bps Y/Y.</p>
<p>Huntington&nbsp;Ingalls's&nbsp;operating cash flow for the quarter totaled $202 million&nbsp;and a negative free cash flow&nbsp;of $274 million.</p>
<p>New contract awards for 2023 were $3.1 billion, with a total backlog of around $48.4 billion as of March 31, 2024.</p>
<p>&#8220;Strong growth in Mission Technologies and stable shipbuilding progress provide a solid foundation for the balance of 2024 and&nbsp;beyond.&#8221;&nbsp;said <strong>Chris Kastner</strong>, president and CEO.&nbsp;</p>
<p><strong>FY24 Outlook Reiterated:</strong>&nbsp;Huntington Ingalls Industries sees Shipbuilding revenue of $8.8 billion-$9.1&nbsp;billion&nbsp;and the corresponding&nbsp;<a href="https://www.benzinga.com/news/earnings/24/02/36895126/huntington-ingalls-cruises-past-forecasts-q4-sales-and-earnings-spike-2024-outlook-fuel-optimism" target="_blank" rel="noreferrer noopener">operating margin of 7.6%-7.8%</a>.</p>
<p>Huntington&nbsp;Ingalls sees Mission&nbsp;Technologies&#8217;&nbsp;revenue of $2.70 billion – $2.75 billion, with an operating margin of 3.0%-3.5% and Mission&nbsp;Technologies&nbsp;EBITDA margin of 8.0%-8.5%.</p>
<p>Huntington Ingalls Industries expects FY24 free cash flow of $600 million-$700 million.</p>
<p>The company continues to expect&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>Investors can gain exposure to the stock via&nbsp;<strong>Global X Funds Global X Defense Tech ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHLD#NYSE">SHLD</a>) and&nbsp;<strong>First Trust Exchange-Traded Fund First Trust Indxx Aerospace &amp; Defense ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MISL#NYSE">MISL</a>).</p>
<p><strong>HII</strong> <strong>Price Action:</strong> Huntington Ingalls shares are down 11.03% at $246.35 at the last check Thursday. </p>
<p><em>Read Next:<a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38584705/federal-reserve-takes-cautious-stand-on-inflation-powell-signals-preference-for-r"> Federal Reserve Takes Cautious Stand On Inflation, Powell Signals Preference For Rate Cuts Over Hikes</a></em></p>
<p><em>Photo: Courtesy Huntington Ingalls</em></p>


Huntington Ingalls Industries shares are trading lower. The company reported Q1 financial results.

<p><strong>HII Financial&nbsp;Outlook</strong><strong>1</strong></p>
<ul>
<li>Reaffirming FY24&nbsp;outlook</li>
<li>Reaffirming 5 year (2024-2028) free cash flow2,3&nbsp;outlook&nbsp;of&nbsp;$3.6B</li>
</ul>
<table align="center">
<tbody>
<tr>
<td><strong>FY24&nbsp;Outlook</strong><strong>1</strong></td>
</tr>
<tr>
<td>Shipbuilding Revenue2</td>
<td>$8.8B&nbsp;-&nbsp;$9.1B</td>
</tr>
<tr>
<td>Shipbuilding Operating Margin2</td>
<td>7.6%&nbsp;-&nbsp;7.8%</td>
</tr>
<tr>
<td>Mission Technologies Revenue</td>
<td>$2.7B&nbsp;-&nbsp;$2.75B</td>
</tr>
<tr>
<td>Mission Technologies Segment Operating Margin2</td>
<td>3.0%&nbsp;-&nbsp;3.5%</td>
</tr>
<tr>
<td>Mission Technologies EBITDA Margin2</td>
<td>8.0%&nbsp;-&nbsp;8.5%</td>
</tr>
<tr>
		</tr>
<tr>
<td>Operating FAS/CAS Adjustment</td>
<td>($63M)</td>
</tr>
<tr>
<td>Non-current State Income Tax Benefit/Expense4</td>
<td>~$0M</td>
</tr>
<tr>
<td>Interest Expense</td>
<td>($90M)</td>
</tr>
<tr>
<td>Non-operating Retirement Benefit</td>
<td>$178M</td>
</tr>
<tr>
<td>Effective Tax Rate</td>
<td>~21%</td>
</tr>
<tr>
		</tr>
<tr>
<td>Depreciation &amp; Amortization</td>
<td>~$350M</td>
</tr>
<tr>
<td>Capital Expenditures</td>
<td>~5.3%
<p>			of Sales</p></td>
</tr>
<tr>
<td>Free Cash Flow2,3</td>
<td>$600M&nbsp;-&nbsp;$700M</td>
</tr>
</tbody>
</table>


Huntington Ingalls Industries Reaffirms 2024 Guidance: Sees Shipbuilding Revenue Of $8.8B-$9.1B, 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 $3.87 per share which beat the analyst consensus estimate of $3.49 by 10.89 percent. This is a 19.81 percent increase over earnings of $3.23 per share from the same period last year.  The company reported quarterly sales of $2.805 billion which beat the analyst consensus estimate of $2.793 billion by 0.41 percent.  This is a 4.90 percent increase over sales of $2.674 billion the same period last year.</p>


Earnings Beats

Huntington Ingalls Indus Q1 2024 GAAP EPS $3.87 Beats $3.49 Estimate, Sales $2.805B Beat $2.793B Estimate

<p>The first-quarter reporting cycle for defense stocks, which are housed within the broader Aerospace sector, is underway, with a handful of industry players having released mixed quarterly performance so far. In particular, while defense bigwigs like Northrop, L3Harris Technologies, Lockheed and RTX have beat on earnings, major contractors like General Dynamics and Textron lagged the same.</p>
<p>Taking a look at the whole picture, we remain optimistic about the first-quarter results of the remaining defense majors, as widespread hostilities continue to engulf the global defense map, thereby compelling nations to safeguard their borders by ordering more cutting-edge defense products.</p>
<p>A handful of defense stocks like <strong>CAE Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cae#NYSE">CAE</a>), <strong>Leidos Holdings</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ldos#NYSE">LDOS</a>), <strong>Curtiss-Wright Corporation </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ldos#NYSE">LDOS</a>), <strong>Embraer</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erj#NYSE">ERJ</a>) and <strong>Huntington Ingalls Industries</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hii#NYSE">HII</a>), which are set to release their first-quarter results soon, are likely to beat on earnings this reporting cycle.</p>
<h3>Factors Driving Defense Stocks&#39; Growth in Q1</h3>
<p>In a bid to tackle the growing geopolitical instability across the globe, particularly with the frequent hostilities erupting in the Middle East and the Russian invasion of Ukraine, governments of the majority of nations have been boosting their defense budget significantly. With the United States being the world&#39;s largest weapon manufacturer, its defense budget has always been in the spotlight. To this end, it is imperative to mention that in March 2024, the Biden administration submitted the fiscal 2025 budget proposal, which requests funding worth $850 billion for the U.S. Department of Defense (DoD), reflecting a 1% increase over fiscal 2024&#39;s enacted budget amount.</p>
<p>Such enhanced budgetary provisions thereby raised the chance of increased order inflows for major defense primes from Pentagon and U.S. allies. This, in turn, must have boosted the defense contractors&#39; backlog. We expect to witness this once all the major defense players reveal their first-quarter numbers.</p>
<p>Ongoing conflicts like the one prevailing in the Middle East, as well as the Russia-Ukraine issue, have also proved to be beneficial for U.S. defense stocks, with these affairs prompting the U.S. government to sanction big defense aid for the affected nations.</p>
<p>Evidently, as of Mar 12, 2024, the United States committed more than $44.9 billion in security assistance to Ukraine since the beginning of the Biden Administration (per a report by the U.S. DoD). Moreover, last year, President Biden asked Congress to approve a $95 billion supplemental spending bill that included $14 billion for Israel.&nbsp; No doubt these security aids imply a supply of military arms and ammunition, which, in turn, must have bolstered revenues for U.S. defense stocks in the first quarter.</p>
<p>For a handful of defense stocks like General Dynamics, which are also critical commercial aerospace industry players, the steadily growing commercial air passenger traffic has been boosting their quarterly performance. Notably, improving air travel has prompted U.S. airlines to once again start ordering and taking deliveries of aircraft from commercial jet makers. Evidently, we might witness a 1.7% rise in General Dynamics&#39; revenues from its Aerospace segment (that came from U.S. commercial customers) in the first quarter. Similar trends are likely to have aided first-quarter performance of other defense stocks, which are yet to report.</p>
<p>However, some lingering factors like shortage of skilled labor, supply-chain challenges and unfavorable inflation impacts might have had some adverse impact on the overall first-quarter performance of the defense stocks.</p>
<h3>Q1 Projections</h3>
<p>Per our latest Earnings Preview, first-quarter earnings for the Aerospace sector are expected to improve 3% on 6.5% sales growth.</p>
<h3>Zacks Methodology</h3>
<p>Given the high degree of diversity in the defense space, finding the right stocks with the potential to beat estimates might be quite a daunting task. However, our proprietary Zacks methodology makes it fairly simple.<br />
We are focusing on stocks that have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).</p>
<p>Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%.</p>
<p>Earnings ESP provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.</p>
<h3>Our Choices</h3>
<p>Below we present five stocks that are expected to come up with an earnings beat this reporting cycle.<br />
<strong>CAE</strong> is a renowned provider of simulation and modelling technologies as well as integrated training services to the defense forces around the globe. In the quarter to be reported, robust demand for the company&#39;s training and flight operations solutions across all regions, notably in Asia, can be expected to have boosted its performance. However, restructuring integration and acquisition costs relating to the AirCentre and L3H MT acquisition might have had some adverse impact on CAE&#39;s bottom line.<br />
CAE, with an Earnings ESP of +1.07% and a Zacks Rank #3 at present, is set to release earnings soon.</p>
<p>The Zacks Consensus Estimate for CAE&#39;s sales is pegged at $957.3 million, indicating a 3% improvement from the year-ago quarter&#39;s reported figure.</p>
<div class="chart_embed">
<h3>CAE Inc Price and EPS Surprise</h3>
<p><a href="https://www.zacks.com/stock/chart/CAE/price-eps-surprise?icid=chart-CAE-price-eps-surprise"><img alt="CAE Inc Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/75/1714389132.png" style="height:325px; width:625px" title="" /> </a></p>
<p>CAE Inc price-eps-surprise | CAE Inc Quote</p>
</div>
<p><strong>Leidos Holdings</strong>&#39; core capabilities include providing solutions in the fields of cybersecurity, data analytics, enterprise IT modernization, operations and logistics, sensors, collection and phenomenology, software development and systems engineering. In January 2024, LDOS successfully deployed a new Flight Service Voice Communications System (FSVCS) using Voice over Internet Protocol technology. This deployment must have fetched solid revenues for the company in the first quarter.</p>
<p>LDOS, with an Earnings ESP of +1.86% and a Zacks Rank #2 at present, is set to release earnings on Apr 30. The Zacks Consensus Estimate for LDOS&#39; sales is pegged at $3.80 billion, indicating a 2.7% improvement from the year-ago quarter&#39;s reported figure.</p>
<div class="chart_embed">
<h3>Leidos Holdings, Inc. Price and EPS Surprise</h3>
<p><a href="https://www.zacks.com/stock/chart/LDOS/price-eps-surprise?icid=chart-LDOS-price-eps-surprise"><img alt="Leidos Holdings, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/b7/1714389184.png" style="height:325px; width:625px" title="" /> </a></p>
<p>Leidos Holdings, Inc. price-eps-surprise | Leidos Holdings, Inc. Quote</p>
</div>
<p><strong>Curtiss-Wright</strong> provides highly engineered products and services for high-performance platforms, and critical applications in key areas such as commercial aerospace and defense electronics, reactor coolant pumps for next-generation nuclear reactors as well as advanced surface treatment technologies. Increasing defense U.S. budget, which includes funding for the incremental construction of Ford-class nuclear-powered aircraft carriers and Columbia ballistic missile submarines, should boost demand for the company&#39;s nuclear propulsion equipment. This, in turn, might have benefited CW&#39;s top-line performance in the first quarter.</p>
<p>CW, with an Earnings ESP of +0.23% and a Zacks Rank #2 at present, is set to release earnings on May 1. The Zacks Consensus Estimate for CW&#39;s sales is pegged at $665 million, indicating a 5.4% improvement from the year-ago quarter&#39;s reported figure.</p>
<div class="chart_embed">
<h3>Curtiss-Wright Corporation Price and EPS Surprise</h3>
<p><a href="https://www.zacks.com/stock/chart/CW/price-eps-surprise?icid=chart-CW-price-eps-surprise"><img alt="Curtiss-Wright Corporation Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/73/1714389238.png" style="height:325px; width:625px" title="" /> </a></p>
<p>Curtiss-Wright Corporation price-eps-surprise | Curtiss-Wright Corporation Quote</p>
</div>
<p><strong>Embraer</strong> designs, manufactures and sells aircraft and aviation-related structural parts to the world&#39;s commercial aviation, executive aviation and defense markets. As one of the leaders in the commercial aircraft space, the improving commercial air travels in recent times must have bolstered ERJ&#39;s first-quarter results.</p>
<p>ERJ, with an Earnings ESP of +90.63% and a Zacks Rank #3 at present, is set to release earnings soon. The Zacks Consensus Estimate for ERJ&#39;s sales is pegged at $855.7 million, indicating a 19.4% improvement from the year-ago quarter&#39;s reported figure.</p>
<div class="chart_embed">
<h3>Embraer-Empresa Brasileira de Aeronautica Price and EPS Surprise</h3>
<p><a href="https://www.zacks.com/stock/chart/ERJ/price-eps-surprise?icid=chart-ERJ-price-eps-surprise"><img alt="Embraer-Empresa Brasileira de Aeronautica Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/6c/1714389281.png" style="height:325px; width:625px" title="" /> </a></p>
<p>Embraer-Empresa Brasileira de Aeronautica price-eps-surprise | Embraer-Empresa Brasileira de Aeronautica Quote</p>
</div>
<p>Another company that&#39;s likely to come up with an earnings beat this time around is <strong>Huntington Ingalls</strong>. It designs, builds and maintains nuclear-powered ships such as aircraft carriers and submarines, and non-nuclear ships, such as surface combatants, expeditionary warfare/amphibious assault and coastal defense surface ships for the U.S. Navy and Coast Guard. In February 2024, HII launched its Virginia-class submarine Massachusetts (SSN 798) into the James River at the company&#39;s Newport News Shipbuilding (NNS) division. This might have aided the company&#39;s quarterly performance.</p>
<p>HII, with an Earnings ESP of +0.58% and a Zacks Rank #3 at present, is set to release earnings on May 2. The Zacks Consensus Estimate for HII&#39;s sales is pegged at $2.80 billion, indicating a 4.7% improvement from the year-ago quarter&#39;s reported figure.</p>
<div class="chart_embed">
<h3>Huntington Ingalls Industries, Inc. Price and EPS Surprise</h3>
<p><a href="https://www.zacks.com/stock/chart/HII/price-eps-surprise?icid=chart-HII-price-eps-surprise"><img alt="Huntington Ingalls Industries, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/e1/1714389368.png" style="height:325px; width:625px" title="" /> </a></p>
<p>Huntington Ingalls Industries, Inc. price-eps-surprise | Huntington Ingalls Industries, Inc. Quote</p>
</div>
<p><a href="https://www.zacks.com/stock/news/2263825/5-defense-stocks-poised-to-surpass-q1-earnings-estimates?cid=CS-BENZ-FT-earnings_esp-2263825">To read this article on Zacks.com click here.</a></p>


Embraer-Empresa Brasileira De Aeronautica

LDOS

5 Defense Stocks Poised to Surpass Q1 Earnings Estimates

<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

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>


Media

GTLS

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>


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>


Short Ideas

Insider Trades

SNAP

Snap, American Express And 2 Other Stocks Insiders Are Selling

<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

Dividend Champion, Contender, And Challenger Highlights: Week Of June 9

Forget The S&P 500 - Here Are 3 Low-Risk, High-Quality Dividend Bargains I Like

Growing defense spending and a new rival to NATO?

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Although labeled as the peace summit, an international call for an end to Russia&rsquo;s invasion of Ukraine effectively did little more than <a href="https://www.aljazeera.com/opinions/2024/6/23/why-did-the-ukraine-peace-summit-fail">harden ideological lines</a>. While a great many support a roadmap to peace that encompasses Ukraine&rsquo;s territorial integrity, key players &ndash; namely Russia and China, along with a few others &ndash; believe differently. What can be said is that <a href="https://investorplace.com/industries/industrial/defense/">defense stocks</a> to buy present a cynically positive framework.</p>



<p>Unless the Russians agree to pull back their troops &ndash; something that Moscow has demonstrated zero intention of doing without receiving what Ukraine considers unacceptable concessions &ndash; and return to internationally recognized borders, the conflict will likely continue. At this point, then, the U.S. and its allies have little to do except to bolster their military capabilities.</p>



<p>Frankly, the conflict may come down to who is going to blink first. For the U.S. to keep its superpower reputation intact, it just can&rsquo;t blink at all.</p>



<p>What makes defense stocks to buy even more compelling is that no matter who&rsquo;s president next, foreign policy will likely play a huge role in any administration. Being the long superpower affords the U.S. with <a href="https://www.nytimes.com/2022/03/16/opinion/us-russia-sanctions-power-economy.html">great economic advantages</a> that can be lost if that power is shared with other nations. While it&rsquo;s a controversial topic, it&rsquo;s time to consider these defense plays.</p>



<h2>Lockheed Martin (LMT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/LMT1600-300x169.jpg" alt="A Lockheed Martin (LMT) Space Systems sign in Sunnyvale, California."><div>Source: Ken Wolter / Shutterstock.com</div></div><p><strong>Lockheed Martin</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/lmt-stock-quote/"><strong>LMT</strong></a>) is one of the biggest names in defense stocks to buy. Fundamentally, the company is important for its ability to project power. Thanks to its massive aerospace division, U.S. forces and allies maintain air superiority across vast regions of the world. Of course, Lockheed is vital in myriad other areas. However, the ability to respond to saber rattling has never been more important.</p>



<p>Financially, LMT stock doesn&rsquo;t offer the most <a href="https://www.google.com/finance/quote/LMT:NYSE?hl=en">exciting profile</a>, I&rsquo;m just keeping it real. However, it benefits from consistency. Between the second quarter of last year to Q1 2024, the company&rsquo;s average earnings per share hit nearly $6.91. This print translated to an average earnings surprise of 5.5%.</p>



<p>During the trailing 12 months (TTM), Lockheed posted net income of $6.78 billion or earnings of $27.34 per share. Revenue in the period reached $69.64 billion. The latest quarterly sales rate (year-over-year) landed at 13.7%.</p>



<p>For fiscal 2024, covering experts anticipate a slight dip in EPS to $26.27. However, revenue could rise by 3.2% to $69.76 billion. Further, it offers a forward yield of 2.69%. Again, LMT isn&rsquo;t exciting but it&rsquo;s one of the top defense stocks to buy.</p>



<h2>Northrop Grumman (NOC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/01/noc-stock-1-300x169.jpg" alt="Northrop Grumman (NOC) logo on a corporate building"><div>Source: Kristi Blokhin / Shutterstock.com</div></div><p>Another revered (and feared) name among defense stocks to buy, <strong>Northrop Grumman</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/noc-stock-quote/"><strong>NOC</strong></a>) makes a strong case for inclusion in your portfolio. Frankly, tensions in Europe are only going to rise unless the Russians encounter a catastrophic battlefield defeat. In the meantime, China consistently presents an adversarial presence. Essentially, Northrop&rsquo;s myriad weapons systems keeps honest people honest.</p>



<p>Financially, Northrop occupies similar ground to Lockheed Martin. Neither company is particularly riveting from an investment standpoint. However, Northrop &ndash; like its rival &ndash; is consistent. During the past four quarters, it posted EPS of $6.03. This print translated to an earnings surprise of just under 6%.</p>



<p>During the TTM period, Northrop posted net income of $2.16 billion or $14.35 per share. In the cycle, revenue reached $40.12 billion. Further, the company&rsquo;s most recent quarterly sales growth rate hit 8.9%. For fiscal 2024, experts believe EPS may rise 6.35% to land at $24.77. On the top line, sales could rise 4.6% to reach $41.11 billion.</p>



<p>Lastly, Northrop offers a forward dividend yield of 1.92%. It&rsquo;s a solid idea if you&rsquo;re looking for a stable candidate among defense stocks to buy.</p>



<h2>RTX (RTX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/07/rtx-stock-300x169.jpg" alt="Raytheon (RTX) defense company logo hanging from glass building"><div>Source: JHVEPhoto / Shutterstock.com</div></div><p>Formerly known as Raytheon Technologies, <strong>RTX</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/rtx-stock-quote/"><strong>RTX</strong></a>) is a key player within the aerospace and defense sector. <a href="https://www.google.com/finance/quote/RTX:NYSE?hl=en">Per its public profile</a>, RTX provides systems and services for commercial, military and government customers. It&rsquo;s easily one of the top defense stocks to buy thanks to its weapons systems, especially its interceptor missiles.</p>



<p>Raytheon of course plays a major role in responding to saber rattling. However, it&rsquo;s also important to back up the tough talk: Raytheon does a lot of backing up, let&rsquo;s put it that way. Even better, RTX stock isn&rsquo;t all doom, gloom and boom. In the past four quarters, the underlying company&rsquo;s EPS landed at roughly $1.27. This print translated to an earnings surprise of 6.45%.</p>



<p>In the TTM period, RTX posted net income of $3.48 billion or $2.54 per share. Moreover, revenue in the cycle hit $71.01 billion. The latest quarterly sales growth rate stands at 12.1%. For fiscal 2024, analysts see EPS rising by 6.3% to hit $5.38. On the top line, revenue may clock in at $79.07 billion, up 6.4% from last year.</p>



<p>RTX offers a decent forward yield of 2.48% for those on the fence.</p>



<h2>Huntington 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>One of the distinct plays among defense stocks to buy, <strong>Huntington Ingalls Industries</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/hii-stock-quote/"><strong>HII</strong></a>) designs and builds military ships. It&rsquo;s also responsible for their overhauling and repairs. This business will be increasingly significant, not only from a capacity perspective but also as a projection of power. Unlike the Russians, the U.S. commands a dominant naval force.</p>



<p>Further, with tensions rising with China, both the current and future administrations can&rsquo;t afford to show weakness. The U.S. Navy will be called upon to demonstrate the nation&rsquo;s broader military supremacy. Therefore, I see a huge demand influx for HII stock. So far, the financials bear this out. During the past four quarters, the average earnings surprise came out to a robust 21.03%.</p>



<p>In the TTM period, Huntington posted net income of $705 million, translating to $17.71 per share. Revenue in this cycle reached $11.59 billion. The most recent quarterly sales growth rate comes in at 4.9%. For fiscal 2024, experts see a slight dip in EPS to $16.56. However, the top line may rise modestly to $11.72 billion from last year&rsquo;s $11.45 billion.</p>



<p>Huntington also offers a forward yield of 2.07%. While you might not get rich with HII, it&rsquo;s one of the most relevant defense stocks to buy.</p>



<h2>AeroVironment (AVAV)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/aerovironment-avav-1600-300x169.png" alt="The logo for AeroVironment (AVAV) is seen through a magnifying glass on the company's website."><div>Source: Pavel Kapysh / Shutterstock.com</div></div><p>A higher-risk, higher-reward idea within the aerospace and defense sector, <strong>AeroVironment</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/avav-stock-quote/"><strong>AVAV</strong></a>) flew to fame with its self-destruct zones. Essentially, military operators can hide behind cover while directly an unmanned drone. Should a target be cited, an operator can deliberately crash into it, with the aim of destruction or disablement.</p>



<p>Drone warfare represented one of the key takeaways in the conflict in Ukraine. I&rsquo;d imagine that future conflicts will involve the same, meaning that AeroVironment may cynically benefit from increased demand. It hasn&rsquo;t always been the most consistent financial performer, with the company missing in its fiscal Q1 2023 report. However, during the past four quarters, its average earnings surprise clocked in at 107.5%.</p>



<p>During the TTM period, AeroVironment posted a net loss of $106.85 million or $4.44 per share in the red. However, sales hit $705.78 million. Further, the most recent sales growth rate soared to 38.8%.</p>



<p>For fiscal 2024, analysts anticipate a big jump in EPS to $2.81. Also, revenue may reach $708.15 million, a 31% increase from last year. It&rsquo;s one of the enticing defense stocks to buy.</p>



<h2>Boeing (BA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/boeing_ba_ch47_1600-300x169.png" alt="Royal Air Force Boeing (BA) Chinook HC2A (352) [ZH895] lifting off from runway"><div>Source: InsectWorld / Shutterstock.com</div></div><p>Aerospace giant <strong>Boeing</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/ba-stock-quote/"><strong>BA</strong></a>) presents a controversial narrative, not just for the underlying relevance to defense stocks to buy but also because of troubles in its civilian unit. Without going into all the details, Boeing for the last few years has struggled due to safety concerns associated with its jetliners. That&rsquo;s the kind of stuff that happens when <a href="https://www.nbcnews.com/news/us-news/faa-investigate-boeing-door-plug-falls-alaska-airlines-plane-midair-rcna133491">doors blow off airplanes</a>.</p>



<p>It appears that the controversies have weighed on the firm&rsquo;s financials. In the past four quarters, Boeing incurred an average loss per share of $1.33. In fairness, the red ink came in at a lesser degree than experts anticipated. Therefore, the average quarterly surprise came out to 18.08%. Still, BA stock is down heavily on a year-to-date basis.</p>



<p>In the TTM period, Boeing suffered a net loss of $2.15 billion or $3.54 per share. Sales in the period landed at $76.44 billion. For fiscal 2024, analysts expect a major improvement to a loss of $1.36. Last year, the company posted a loss of $5.81 per share.</p>



<p>On the top line, sales may dip 5.4% to $73.58 billion. Still, a recovery could materialize in fiscal 2025, with sales projected to rise to $88.36 billion.</p>



<h2>Blacksky Technology (BKSY)</h2>



<a href="https://investorplace.com/wp-content/uploads/2020/10/satellite-communication-earth-space-1.jpg"><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/10/satellite-communication-earth-space-1-300x169.jpg" alt="futuristic image of earth from space to represent aerospace stocks"></a><p>If you want to roll the dice with your defense stocks to buy, <strong>Blacksky Technology</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/bksy-stock-quote/"><strong>BKSY</strong></a>) might be an enticing prospect. For all intents and purposes, when you consider the lowly share price and the nothing-burger market capitalization, Blacksky is a penny stock. However, it&rsquo;s part of the burgeoning geospatial intelligence ecosystem. Therefore, it could play a huge role in critical data collection.</p>



<p>Understanding where enemy positions are located along with potential areas of movement will offer military operators a potentially pivotal advantage. Therefore, BKSY stock could reasonably see a demand influx if more people recognize the opportunity. For now, it&rsquo;s a hit-or-miss affair financially. Still, it must be said that in terms of mitigating expected losses per share, Blacksky posted a quarterly surprise of 11.45% between Q2 2023 and Q1 2024.</p>



<p>During the TTM period, the company incurred a net loss of $52.35 million or 37 cents per share. Revenue in the period hit $100.33 million. For fiscal 2024, experts believe Blacksky will post a loss per share of 34 cents, an improvement from last year&rsquo;s 39 cents in the red.</p>



<p>Revenue may land at $108.94 million, up 15.3%. Further, fiscal 2025 sales could soar to $138.54 million, up 27.2%.</p>



<p><em>On the date of publication, Josh Enomoto</em><em> did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;</em><em>The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank"><em>Publishing Guidelines</em></a><em>.</em><em></em></p>
<div><p>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/06/7-defense-stocks-to-buy-amid-peace-summit-tensions/">7 Defense Stocks to Buy Amid Peace Summit Tensions</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

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<p>Like it or not, <a href="https://investorplace.com/industries/industrial/defense/">defense stocks</a> have always been an important sector of the market. Some might make the argument that it&rsquo;s the most important segment. Essentially, while the subject is controversial, free societies must establish mechanisms to keep honest people honest. The threat of extreme violence is what has kept the peace. But that paradigm may soon change.</p>



<p>I really laid out the case for defense stocks in a <em>TipRanks</em> article I wrote recently. Essentially, a strong case can be made that Donald Trump and the Republicans have an easy road to the White House (and perhaps other seats of power). And because the so-called MAGA conservatives <a href="https://www.tipranks.com/news/article/why-lockheed-martin-nyselmt-could-win-under-a-trump-administration">favor an isolationist foreign policy</a>, U.S. partners are sweating bullets.</p>



<p>Where the matter gets especially murky is that Trump constantly <a href="https://www.maxwell.syr.edu/news/article/taylor-weighs-in-on-trump-s-ukraine-peace-plan-in-newsweek-article">talks about peace</a>. The word aligns with basic Christian theology, likely in a bid among Republicans to court evangelicals. However, reasonable people understand that sanctification cannot precede justification.</p>



<p>Isolationism of the MAGA variety reverses this established narrative &ndash; and that&rsquo;s what has global partners freaked out. The only &ldquo;good&rdquo; that can come out of it is potential profitability of these defense stocks to buy.</p>



<h2>Lockheed Martin (LMT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/LMT1600-300x169.jpg" alt="A Lockheed Martin (LMT) Space Systems sign in Sunnyvale, California."><div>Source: Ken Wolter / Shutterstock.com</div></div><p>One of the biggest defense stocks in the world, <strong>Lockheed Martin</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/lmt-stock-quote/"><strong>LMT</strong></a>) is really in the spotlight right now. Just recently, the company disclosed blowout earnings for the second quarter. While analysts presently rate LMT stock as a <a href="https://www.tipranks.com/stocks/lmt/forecast">consensus hold</a>, that might change over the next several days. Further, if Donald Trump is elected to a second term, demand for Lockheed&rsquo;s defense solutions could skyrocket.</p>



<p>What has international partners worried is Trump&rsquo;s broadcasting of isolationist sentiments. Not too long ago, he bemoaned that Taiwan doesn&rsquo;t do enough to support its own defense. At the same time, the former president accused the island nation of basically grabbing the entire share of the burgeoning semiconductor ecosystem. Now, reports are coming out that many Taiwanese favor boosting defense spending.</p>



<p>It&rsquo;s going to have to considering that China has its eyes on it. Further, if the U.S. goes through with a hands-off policy, then Taiwan may have to defend itself. After all, under this contrarian framework, a little bit of violence should be allowed to prevent excessive violence.</p>



<p>Honestly, I&rsquo;m not sure what that means. However, it does seem cynically positive for LMT and other defense stocks.</p>



<h2>Huntington Ingalls (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>Even with an isolationist policy &ndash; assuming that Trump wins in November &ndash; the U.S. cannot afford to shirk its unofficial responsibilities. Sure, the <a href="https://www.cnn.com/2016/11/09/opinions/real-meaning-populism-ron-paul/index.html">populist movement</a> (ala former Congressman Ron Paul) decries foreign intervention. Here&rsquo;s the problem: if the U.S. doesn&rsquo;t impose its hegemony on others, then other countries will eagerly fill the power gap. And that&rsquo;s what brings us to <strong>Huntington Ingalls</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/hii-stock-quote/"><strong>HII</strong></a>).</p>



<p>Huntington Ingalls is a defense contractor specializing in maritime solutions. Basically, if you want to invest in the U.S. Navy, you acquire shares of HII stock. That&rsquo;s about as close as you can get. Most importantly, all great powers project their strength through the high seas. In this case, <a href="https://fairbank.fas.harvard.edu/research/blog/chinas-new-military-commanders/#:~:text=Starting%20around%202019%2C%20two%20years,ninth%20and%20tenth%20Navy%20Commanders%2C">China&rsquo;s naval ambitions</a> present a huge threat to the U.S. and global democracies.</p>



<p>Almost certainly, this framework will lead to significant growth in Huntington sales over the next several years. Even with Trump&rsquo;s populist and isolationist message, presumably no American politician can survive a deliberate acquiescence to the Chinese. It&rsquo;s just not going to happen, especially because of our heated economic rivalry.</p>



<p>So, forget about the day-to-day financials. Instead, I&rsquo;d look to HII as one of the defense stocks to consider for the long term.</p>



<h2>AeroVironment (AVAV)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/aerovironment-avav-1600-300x169.png" alt="The logo for AeroVironment (AVAV) is seen through a magnifying glass on the company's website."><div>Source: Pavel Kapysh / Shutterstock.com</div></div><p>When it comes to <strong>AeroVironment</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/avav-stock-quote/"><strong>AVAV</strong></a>), the catalyst for the business is a kinetic motivation. In contrast, Lockheed Martin and Huntington Ingalls represent more strategic investments; that is, their core products represent a show of power that may prevent/discourage war. Should conflicts go hot, these weapons systems would be ready to go. In AeroVironment&rsquo;s case, the core product essentially assumes a hot conflict.</p>



<p>That&rsquo;s because AereoVironment specializes in unmanned drones that loiter in the air, seeking out targets. When a human operator that is miles away from the shooting spots a target, the drone slams into it, causing damage or outright destruction. AeroVironment became sort of a household name thanks to its tremendous success in Ukraine.</p>



<p>In the years ahead, I anticipate company sales to soar &ndash; and that&rsquo;s especially the case under a second Trump administration. An isolationist policy essentially green lights dictators to see what they can get away with. And then said dictators can profit from their warmongering because the White House would push for &ldquo;peace.&rdquo;</p>



<p>Threatened democracies would be on notice: protect yourself because America is staying home. That&rsquo;s bad for stability but good for defense stocks like AVAV.</p>



<p><em>On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank"><em>Publishing Guidelines</em></a><em>.</em></p>



<p><em>On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.</em></p>
<div><p>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/07/3-defense-stocks-to-buy-as-the-geopolitical-temperature-rises/">3 Defense Stocks to Buy as the Geopolitical Temperature Rises</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

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Huntington Ingalls Indus (HII) Forecast

Huntington Ingalls Indus (NYSE:HII) Stock, Quote.Headers.trade-ideas