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Huntington Ingalls Industries, Inc. (NYSE:HII) is an undervalued aerospace and defense stock to buy. On May 5, Huntington Ingalls Industries (NYSE:HII) delivered robust first-quarter 2026 results, driven by strong revenue growth.

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Revenue in the quarter was up 13.4% year over year to $3.1 billion, driven by growth at Newport News Shipbuilding, Ingalls Shipbuilding, and Mission Technologies. Net earnings in the quarter came in at $149 million, or $3.79 a share, in line with last year’s same-quarter earnings. Huntington Ingalls Industries secured $4 billion worth of new contracts.

During the quarter, Huntington Ingalls Industries expanded its UK unmanned operations facility, strengthening its international presence. The company was also selected to compete for the $25.4 billion Advanced Technology Support Program V (ATSP5) microelectronics multi-award contract.

Following an impressive first quarter, the company has reaffirmed its full-year and medium-term outlook. It expects revenue growth of about 6% and medium-term shipbuilding revenue growth of 6%. Shipbuilding revenue is expected to range between $9.7 billion and $9.9 billion, with an operating margin of 5.5% to 6.5%.

Huntington Ingalls Industries, Inc. (NYSE:HII) is the largest military shipbuilding company in the United States, specializing in the design, construction, and maintenance of nuclear-powered aircraft carriers and submarines for the U.S. Navy and Coast Guard. It also produces amphibious assault ships, national security cutters, and develops advanced defense technologies, including cyber solutions and uncrewed autonomous systems.

While we acknowledge the potential of HII as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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