Up and Down With Walter

I could waste a lot of your time with graphs, charts, and other assorted worthless information all intended to show you that I know something about something when it comes to this company, but the truth is, I don't know squat about this company. My intent is to provide you with brief overview of the company's various valuations so you can determine if you have an investment interest in this company.

What They Do
Huntington Ingalls Industries designs, builds, overhauls, and repairs ships primarily for the U.S. Navy and the U.S. Coast Guard. They are the nation's sole designer, builder, and refueler of nuclear-powered aircraft carriers, a builder of amphibious assault and expeditionary warfare ships for the U.S. Navy, the sole builder of National Security Cutters for the U.S. Coast Guard, one of only two companies currently designing and building nuclear-powered submarines for the U.S. Navy and one of only two companies that builds the Navy's current fleet of DDG-51 Arleigh Burke-class destroyers.
Industry peers include General Dynamics, BAE Systems, and Electric Boat Corporation.

Short-Term Target
For the very short term investor, my short-term target for the stock is $229.86, with an initial trailing stop set at $214.73. With a current price of $218, upward price movement will find no resistance at $229.86 and again at $234.89, with final resistance found at $243.46. Downward price movement will find support at $214.60 and again at $210.21, with final support found at $198.08.

Momentum Target
For the momentum investor, my momentum target for the stock is $281. Momentum targets are determined by overlaying a company's most recent annual EPS, its year-over-year earnings growth, and the current yield of a 10-year treasury. Momentum investing often requires investors to trade in stocks that have already enjoyed significant gains while making no allowances for overall market corrections or the sustainability of a company's earnings.

Growth Target
For the growth only investor, my growth target for the stock is $308. Growth targets are determined using a company's year-over-year earnings growth, year-over-year PE growth, and year-over-year price growth.

Fair Value Investing
Fair value investing, more commonly known as value investing, requires investors to consider a company's overall financial condition including past and future earnings growth, free cash flow, both book and tangible book values, net current asset value, and many other valuation metrics. For many fair value investors, the minimum required hold is five (5) years. For the fair value investor, my fair value estimate for the stock is $181.

Prior Average Valuations
My average valuation for the prior five year period of FY 2013 through FY 2017 was $67.90. Earnings during that time period averaged $9.09 per year.

Five Year Growth of $10K
If you had invested $10K in this stock five years ago, you would have received 111.10 shares with a cost basis of $90.01. Had you held the stock for five years and then sold it you would have sold at $190.31. You would have also collect $235.94 in dividends. Your initial $10K investment would have returned to you $21,379, or 23% per year.

There you are, as promised, short and to the point.

Wax