ChatGPT Stock Advice: Top 8 Defense Stocks

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

Number of Hedge Fund Holders: 36

Huntington Ingalls Industries, Inc. (NYSE:HII) is among the top 8 defense stocks based on ChatGPT’s advice. On October 30, the company reported financial results for the third quarter of fiscal 2025, with record third quarter sales of $3.2 billion, up 16.1% year-over-year, driven by strong growth across the Ingalls Shipbuilding, Newport News Shipbuilding, and Mission Technologies divisions.

Diluted earnings per share came in at $3.68, up nearly 44% from the prior year’s quarter, and beating estimates of $3.29 per share. Segment operating income stood at $179 million, with a margin of 5.6%, up from $97 million and 3.5% in Q3 2024. The company attributed the improvement to favorable results at Newport News Shipbuilding and Ingalls Shipbuilding.

Robust financial results during the quarter were also supported by substantial throughput gains at the company’s shipyards, resulting in an 18% increase in year-over-year shipbuilding sales. President and CEO Chris Kastner’s tone during the earnings call reflected confidence that HII and Navy’s investments in workforce, supply chain, and infrastructure will yield positive results for throughput ahead.

Kastner stated that Huntington Ingalls Industries, Inc. (NYSE:HII) is expecting to achieve a 15% throughput improvement for fiscal 2025, with enhancement efforts accelerating throughput throughout the year. The company has hired 4,600 shipbuilders this year and has seen an improvement in retention rates at both shipyards.

There has also been a growth in experienced hires following the wage investment this year, as well as increased hiring from regional workforce development pipelines. Moreover, the company is expanding its industrial base through its distributed shipbuilding strategy, which includes outsourcing at several partner sites, likely leading to increased throughput and improved schedule adherence.

In other related news, Huntington Ingalls Industries, Inc. (NYSE:HII) secured $2 billion in new contract awards during the recent quarter, increasing its total backlog to $55.7 billion as of September 30, 2025.

Following the earnings call, TD Cowen lifted its price target to $350 from $320 and kept a Buy rating on its shares, while Goldman Sachs raised HII’s price target to $356 from $316 and maintained a Buy rating on the company’s shares.

The company’s recent share price performance has buoyed investors. Diamond Hill Select Fund stated the following regarding Huntington Ingalls Industries, Inc. (NYSE:HII) in its third quarter 2025 investor letter:

“Among our top individual contributors in Q3 were Mr. Cooper Group and Huntington Ingalls Industries, Inc. (NYSE:HII). US Department of Defense (DOD) and Navy supplier Huntington Ingalls is seeing early signs of progress from its recent efforts to improve employee attrition. We continue to believe Huntington Ingalls is one of the best positioned defense companies to meet the DOD’s need to prepare for a potential conflict in the Pacific — which should ensure strong demand for the next five-plus years. Furthermore, as its recent labor issues abate, the company should be able to improve margins over time.”

Huntington Ingalls Industries, Inc. (NYSE:HII) is an American defense company with expertise in shipbuilding. The stock has had impressive returns in 2025, gaining 71.64% year-to-date as of the close on October 31.