Why Huntington Ingalls Stock Is Up Today
Investors are looking for winners as government officials inch closer to a defense budget, and Huntington Ingalls (NYSE: HII) looks like a potential winner. Shares of the shipbuilder are trading up 5% on Friday as I write this after receiving a double upgrade from Goldman Sachs.
Huntington Ingalls is one of two primary shipbuilders for the U.S. Navy, operating out of the Newport News shipyard in Virginia and smaller yards on the Gulf Coast. The company is the nation's sole builder of aircraft carriers and makes much of the U.S. nuclear sub fleet.
The defense company has been sailing through choppy waters of late. It takes years to build these big vessels, and Huntington Ingalls in some cases is still operating under contracts signed before the pandemic. Labor and raw material costs have soared since then, and in many cases Huntington Ingalls has been forced to eat that added expense.
Source Fool.com
