HII · HUNTINGTON INGALLS INDUSTRIES INC.

Back to holdings

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships, surface combatants, and national security cutters for the U.S.

Close · 3M

-37.14%

Held by 2 AI ETFs

PQUS0.070%

as of Jul 21

QRFT0.030%

as of Jul 8

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals4

Win rate0% (0/4)

Avg buy return-25.93%

PQUSnow 0.070% of fund1 signal

PQUS · New entry · 1d

weight 0 → 0.020% (new)·stock down 11.2% in the 30 days before

Jun 26·entry $281.99·now $270.04Fresh

-4.24%

since Jun 26

QRFTnow 0.030% of fund1 signal

QRFT · New entry · 1d

weight 0 → 0.040% (new)·stock down 7.9% in the 30 days before

Mar 20·entry $407.98·now $270.04Fresh

-33.81%

since Mar 20

AMOMno longer held10 signals

AMOM · Exit · 1d

The AI ETF likely divested from HII because its quantitative models flagged the stock as potentially overvalued, given its PER of 21.22 relative to its 8.23% revenue growth and 12.28% ROE, leading to a complete exit. For retail investors, this action emphasizes the importance of understanding your own valuation thresholds and not blindly following AI decisions, instead using such signals as a prompt for independent due diligence.

weight 0.650% → 0 (exited)·stock down 8.4% in the 30 days before

May 4·entry $363.37·now $270.04

-25.68%

since May 4

AMOM · Weight decrease · 2d

The AI ETF is likely reducing its HII weighting due to perceived overvaluation, as its PER of 23.62 appears stretched relative to its 8.23% revenue growth. This consecutive decrease signals a deliberate de-risking strategy, potentially anticipating a valuation correction. For retail investors, this highlights the importance of evaluating a stock's valuation metrics alongside its growth, as even fundamentally sound companies can become overvalued. Such AI-driven portfolio adjustments warrant an independent reassessment of a stock's current price justification.

weight 0.670% → 0.650% (-0.020 pp)·stock down 8.3% in the 30 days before

May 1·entry $360.60·now $270.04

-25.11%

since May 1

AMOM · Weight decrease · 2d

weight 0.730% → 0.680% (-0.050 pp)·stock down 7.5% in the 30 days before

Apr 22·entry $366.88·now $270.04

-26.40%

since Apr 22

AMOM · Weight decrease · 2d

weight 0.760% → 0.730% (-0.030 pp)·stock down 7.8% in the 30 days before

Apr 17·entry $394.81·now $270.04

-31.60%

since Apr 17

AMOM · Weight decrease · 4d

weight 0.850% → 0.760% (-0.090 pp)·stock down 4.7% in the 30 days before

Apr 10·entry $394.41·now $270.04

-31.53%

since Apr 10

AMOM · Weight decrease · 3d

weight 0.850% → 0.790% (-0.060 pp)·stock down 3.4% in the 30 days before

Apr 9·entry $403.37·now $270.04

-33.05%

since Apr 9

AMOM · Weight decrease · 2d

weight 0.850% → 0.810% (-0.040 pp)·stock down 4.2% in the 30 days before

Apr 8·entry $411.35·now $270.04

-34.35%

since Apr 8

AMOM · Weight increase · 3d

weight 0.620% → 0.850% (+0.230 pp)·stock down 3.2% in the 30 days before

Apr 6·entry $407.66·now $270.04Fresh

-33.76%

since Apr 6

AMOM · Weight increase · 2d

weight 0.620% → 0.830% (+0.210 pp)·stock down 9.2% in the 30 days before

Apr 2·entry $396.62·now $270.04Fresh

-31.91%

since Apr 2

AMOM · Weight decrease · 2d

weight 0.640% → 0.620% (-0.020 pp)·stock down 16.3% in the 30 days before

Mar 31·entry $379.90·now $270.04

-28.92%

since Mar 31

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of May 2

AI ETFs AMOM and QRFT are currently holding Huntington Ingalls Industries, with AMOM recently showing a trend of decreasing its allocation. This activity contrasts with the Buffett-style framework's 'Fail' verdict, which suggests the company does not meet the necessary criteria for investment due to financial health and valuation concerns, implying the AIs may prioritize different investment signals.

Circle of CompetenceHuntington Ingalls Industries, as a primary defense shipbuilder with long-term government contracts, operates with sufficiently predictable unit economics to allow for reasonable ten-year cash flow projections.
Economic MoatThe company benefits from significant switching costs, high barriers to entry, scale-driven cost advantages, and regulatory entanglement inherent in its role as a key national defense contractor.
ManagementInsufficient data is provided to assess management's candor, capital allocation discipline, or skin in the game, which are critical elements for a comprehensive management evaluation.
Financial HealthThe provided current ROE of 12.28% does not meet the framework's criterion of a 10-year average ROE of 15% or more, and other key financial health metrics are not available for assessment.
Margin of SafetyGiven the failure on financial health and current valuation multiples such as a PER of 23.38 and EV/EBITDA of 20.24, it is difficult to establish a defensible margin of safety.

Huntington Ingalls Industries demonstrates a clear circle of competence and a strong economic moat due to its defense contracting nature. However, the company fails on key financial health metrics, particularly its return on equity, and consequently does not present a clear margin of safety at its current valuation. These factors lead to an overall 'Fail' verdict under the value-investing framework.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.