Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Huntington Ingalls Industries, Inc. (NYSE:HII) Is One Of The Best Shipbuilding Stocks To Invest In According To Hedge Funds

In this piece, we’ll look at one of the top hedge fund shipbuilding stocks and one of the biggest shipbuilding companies in the world. We’ve also made a full, free list of all the largest shipbuilding companies in the world, and you can check it out by reading 15 Biggest Shipbuilding Companies in the World.

Ships are one of the integral components of the global transportation industry. As the population grows and living conditions improve, there will be more demand for goods, which is expected to drive the demand for goods transportation by sea. Moreover, the tourism industry is also driving demand for cruise ships and ferries. For example, mega oil tankers are responsible for maintaining a supply chain that allows millions of barrels of oil to be shipped around the globe every day. These firms can benefit from stable demand and generate profits, which makes them good investment opportunities. There are, many oil tanker stocks that pay dividends, such as Genco Shipping & Trading Limited (NYSE:GNK). Genco’s forward annual dividend yield is 3.83%, higher than tech giant Google’s parent Alphabet Inc. (NASDAQ:GOOGL).

Fueling these large industrial bases is the global shipbuilding industry, which according to research reports can grow to be worth as much as $220 billion by 2023 end and $279 billion in 2028. Most shipbuilding companies are concentrated in a few advanced industrial nations. Out of the top 15 shipbuilding countries in the world, Japan, Korea, and China accounted for 94.2% of global ship output as of 2021. The United Nations Conference on Trade and Development’s (UNCTAD) data for 2023 shows that Asia maintained its global edge, accounting for 95% of global ship production.

When looking at the top shipbuilding countries, the geographical concentration allows us to identify the biggest shipbuilding companies in the world. Since building ships requires large amounts of capital expenditures, some of the largest shipbuilding firms are subsidiaries of other companies. However, some companies are also independent and publicly-traded, such as the South Korean Hanwha Ocean Co., Ltd. (KRX:042660.KS). Hanwha Ocean is worth more than $7 billion, and the stock is up 40.6% over the past 12 months and 27.5% year-to-date. The firm is currently eyeing expansion in the lucrative Pacific shipbuilding market that has seen fresh interest after U.S. military partnerships under the AUKUS program (a trilateral partnership between the US, Australia, and South Korea)  sought to grow capabilities aimed at countering the Chinese.

Another beneficiary of this partnership is the Australian defense and shipbuilding firm Austal Limited (ASX:ASB.AX). Austal is one of Australia’s largest shipbuilding companies and it raked in A$1.5 billion ($1.0 billion) in revenue during its last fiscal year. It is a key US and Australian partner for the AUKUS program and has received multiple contracts from Australian and US navies for patrol boats and landing craft. An Australian contract in November 2023 ordered two patrol boats for A$157 million ($104 million) and later its US division kicked off work on building patrol boats for the US Navy under a $91.5 million contract. Moreover, Austal had a takeover offer from Hanwha, which it rejected, but which also boosted the stock by 14%.

As a whole, the global shipbuilding industry is divided into categories such as oil tankers, defense products, and cargo vessels. Within these, the container ship industry has faced a lot of criticism due to its contribution to global emissions. These ships account for 3% of all of the world’s greenhouse gas emissions, and the heat that the industry has faced due to the emissions has also led to interesting shipbuilding solutions. For example, Schooner Apollonia is a ship that relies on wind to remove trucks and polluting fuel out of the equation for some beer shipments between Kingston and New York City. On the commercial side, the International Maritime Organization (IMO) shared in January that “30 large commercial vessels in operation with WPT [wind-assisted propulsion technologies] installed, a further eight wind-ready ships and 16 more large vessels installations pending” were responsible for 2.2 million dead weight tons (dwt) of shipping capacity.

Finally, a smaller piece of the global shipbuilding industry is the cruise ship sector. The global cruise industry is estimated by some to grow to $15 billion by 2028 end, and after the coronavirus pandemic, analysts also believe that cruise companies might continue to benefit from strong demand.

With these details in mind, let’s take a look at one of the biggest shipbuilding companies in the world.

Huntington Ingalls Industries, Inc. (NYSE:HII) Is One Of The Best Shipbuilding Stocks To Invest In According To Hedge Funds

Huntington Ingalls Industries, Inc. (NYSE:HII) raked in $11.5 billion in revenue over the last four quarters. This not only made it one of the largest shipbuilding companies in the world, but also made it America’s largest shipbuilding company.

Huntington Ingalls Industries, Inc. (NYSE:HII) is one of the most important shipbuilding firms in the U.S. This is because it makes aircraft carriers and submarines. Huntington Ingalls Industries, Inc. (NYSE:HII) reported its first-quarter earnings in April and managed to beat analyst revenue and EPS estimates of $2.79 billion and $3.53, respectively. The company posted $2.8 billion in revenue and $3.53 in EPS. However, the stock dipped on the back the earnings release on the back of concerns regarding cost controls.

Insider Monkey took a look at hedge fund investment filings for the first quarter of 2024 and found that 31 held stakes in Huntington Ingalls Industries, Inc. (NYSE:HII). Among these, Cliff Asness’ AQR Capital Management owned the most valuable position, worth $150 million.

While defense contractor General Dynamics Corporation (NYSE:GD) had seen 54 hedge fund hold stakes in it, Huntington Ingalls Industries, Inc. (NYSE:HII) is a pureplay shipbuilding company. Additionally, while it is the third biggest shipbuilding company in the world in revenue terms, it is the biggest US publicly listed company in this industry.

To check the free full list, please visit the 15 Biggest Shipbuilding Companies in the World.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

Seeking a Strong Gold Market Upside?

Brace yourself.

There’s no question that thanks to Washington’s disastrous policies – and out-of-control spending – the outlook for the U.S. economy now appears dire.

And with the U.S. national debt now rising by a staggering $1 trillion every 100 days…there are no easy solutions to help get the nation back on track.

While Jay Powell and the Biden-Harris White House sweat out a federal debt that has reached $35.5 trillion – and climbing – many investors have raced to the sidelines with their cash.

But the truly savvy investors laugh while Jay Powell frets, because they understand that this ridiculous spending has also triggered a nearly unprecedented bull market for gold.

Just look at this chart for the yellow metal.

After testing the $2,000/ounce mark in August 2020 and February 2022, gold traded down to near $1,600/ounce in October 2022.

Since then, gold prices have been on an absolute tear and currently sit above $2,600/ounce, a $1,000/oz increase in just two short years.

But the surge in gold prices that we’ve seen over the past few years could pale in comparison to what’s on the horizon.

As shocking as it may sound, with no end in sight for the Fed’s money printing, we could see the price of gold increase by many multiples in the years ahead.

With soaring inflation, the dollar stands to lose more and more of its value, which means you’ll need a lot more dollars to buy gold.

According to legendary investor Peter Schiff, today’s seemingly-high gold price of $2,600/oz. “could soar to $26,000/oz. — or even $100,000/oz. There’s no limit because gold isn’t changing — it’s the value of the dollar that’s decreasing.”[i]

Meanwhile, as profitable as gold has been, select gold mining stocks have really kicked into high gear, handing investors even bigger profits.

Click to continue reading…