Jim Cramer on Huntington Ingalls: "I Think It's a Buy"

Huntington Ingalls Industries, Inc. (NYSE:HII) is one of the stocks in Jim Cramer’s spotlight. During the lightning round, a caller asked about the company, and Cramer stated:

“I’ve liked it since it was spun off… I think it’s terrific. It’s the absolute best plan for us to be able to build our ships, and we need a better Navy. I think it’s a buy.”

Huntington Ingalls (NYSE:HII) designs, builds, and services military ships, including both nuclear and non-nuclear vessels for the U.S. Navy and Coast Guard. The company also provides advanced defense technologies such as AI-driven systems, cybersecurity, electronic warfare, and fleet sustainment solutions. Diamond Hill Capital stated the following regarding Huntington Ingalls Industries, Inc. (NYSE:HII) in its Q1 2025 investor letter:

“Shares of US Department of Defense and Navy supplier Huntington Ingalls Industries, Inc. (NYSE:HII) rose in Q1 following President Trump’s announced formation of a new office of shipbuilding. The president further made comments suggesting the government is working to help Huntington Ingalls address recent supply chain and labor issues, which we anticipate will be resolved over time. We maintain our conviction in Huntington Ingalls’ positioning relative to the Department of Defense’s need to prepare for a potential conflict in the Pacific — which would in turn ensure strong demand for the next 5 to 10 years. Further, we believe resolving the aforementioned supply chain and labor issues will allow Huntington Ingalls to improve its margins — a likelihood which we believe is not yet reflected in the share price.”

While we acknowledge the potential of HII as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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