What Happened?
Shares of aerospace and defense company Huntington Ingalls (NYSE:HII) jumped 13.1% in the mid-day session after President Trump announced plans to help the shipping industry, including funding via tax incentives, during a session with Congress. He added, "We are also going to resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding." This is good news for companies like Huntington Ingalls, as the comments suggest the shipping industry might enjoy favorable policies and regulations under the Trump administration if the plans take shape.
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What The Market Is Telling Us
Huntington Ingalls’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Huntington Ingalls and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 27 days ago when the stock dropped 17% on the news that the company reported a disappointing fourth quarter, with EPS missing significantly and revenue falling short of Wall Street's estimates. The weak top line was driven by lower volume in all segments. Overall, this was a challenging quarter.
Huntington Ingalls is up 3.1% since the beginning of the year, but at $193.48 per share, it is still trading 34.2% below its 52-week high of $293.99 from March 2024. Investors who bought $1,000 worth of Huntington Ingalls’s shares 5 years ago would now be looking at an investment worth $922.70.
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