5 Value Stocks to Buy According to Billionaire Paul Tudor Jones

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

Stake Value of Tudor Investment Corp : $4.5 million   

Number of Hedge Fund Holders: 15  

PE Ratio: 10.78

Analysts expect Huntington Ingalls Industries, Inc. (NYSE:HII) to exceed market expectations on sales, margin, and free cash flows over the coming months. Wolfe Research recently initiated coverage of the stock with an Outperform rating and a price target of $225. Hedge funds seem to agree with analysts in this regard. 15 funds out of 867 tracked by Insider Monkey are bullish on the firm, as of the end of the third quarter of 2021. These funds held stakes in the company that had a combined worth of around $163 million. 

Among these funds, AQR Capital Management is a leading shareholder in Huntington Ingalls Industries, Inc. (NYSE:HII) with 460,534 shares worth more than $88 million. The true value of the stock lies in the stable business of the firm as a foremost manufacturer of Navy ships. The company was recently awarded a $113 million contract for Naval Sea Systems. The stock also offers dividend growth at a relatively cheap price. On November 3, the firm raised the quarterly dividend by 4% to $1.18 per share. Huntington has consistently increased dividend payouts for the last eight years. 

Huntington Ingalls Industries, Inc. (NYSE:HII) stock also stands to benefit from the rise in US-China tensions, especially in the South China Sea. The US is working with allies in this regard to bolster Navy defenses in the area. Most new product orders are likely to fall to Huntington. In 2022, analysts expect the firm to generate $550 million in free cash flows as well. With room for share buybacks and dividend hikes, the stock looks likely to outperform market expectations in the coming months.