5 Most Undervalued Defense Stocks to Buy According to Analysts

In this article, we will discuss the 5 Most Undervalued Defense Stocks to Buy According to Analysts. For deeper discussion and analysis, read 10 Most Undervalued Defense Stocks to Buy According to Analysts.

5. Huntington Ingalls Industries, Inc. (NYSE:HII)

Forward P/E: 17.67

Huntington Ingalls Industries, Inc. (NYSE:HII) entered into a memorandum of understanding with Applied Intuition on April 21 to collaborate on the development of AI-enabled capabilities for next-generation naval platforms. The partnership focuses on advancing “Warship OS,” enabling AI-defined warships designed to support autonomous and manned-unmanned teaming operations, reflecting a broader push toward software-defined naval systems.

On the same day, Huntington Ingalls Industries, Inc. (NYSE:HII) announced plans to expand production of its Romulus 151 unmanned vessels, with four additional units to be built in Louisiana alongside an initial prototype already under construction. Management emphasized that the program reflects a shift toward scalable unmanned maritime capability, combining autonomy, shipbuilding expertise, and industry partnerships to accelerate fleet deployment.

Huntington Ingalls Industries, Inc. (NYSE:HII) is a leading U.S. naval shipbuilder specializing in the design, construction, and maintenance of nuclear-powered aircraft carriers and submarines, as well as surface combatants for the U.S. Navy and Coast Guard. The company is headquartered in Newport News, Virginia, and was formed in 2011.

The collaboration with Applied Intuition and the expansion of unmanned vessel production highlight HII’s strategic pivot toward AI-integrated naval warfare capabilities. These initiatives strengthen its long-term positioning in next-generation defense systems, where autonomy and rapid deployment are becoming increasingly critical.