The One-Year Loss for Huntington Ingalls Industries Shareholders Likely Driven by Its Shrinking Valuation
Huntington Ingalls Industries, Inc. (NYSE:HII) shareholders should be happy to see the share price up 16% in the last month, but that doesn't change the fact that the returns over the last year have been less than pleasing, with a decline of 33% in a year. The underlying business has been responsible for the decline, with an EPS drop of 18% for the last year and a significant insider selling activity. Despite this, long-term shareholders have made money, with a gain of 4% per year over half a decade.
- The current sell-off could be an opportunity worth considering if the fundamental data continues to indicate long term sustainable growth, but investors should not overlook the warning signs for Huntington Ingalls Industries.
- What are the specific reasons behind the shrinking valuation of Huntington Ingalls Industries, and how will this impact its ability to recover in the future?