Jim Cramer on Huntington Ingalls: "It Is the Best Thing We Have When It Comes to the Navy"

Huntington Ingalls Industries, Inc. (NYSE:HII) is one of the stocks that was on Jim Cramer’s radar recently. Answering a caller’s query about the stock, Cramer stated:

Huntington Ingalls has been a buy… It’s been so right for a very long time, and you know what? It’s going to continue to be right because it’s not that expensive a stock. And you’re absolutely right, it is the best thing we have when it comes to the Navy.

Huntington Ingalls Industries, Inc. (NYSE:HII) builds and repairs military ships, including aircraft carriers, submarines, and cutters. In addition, the company handles maintenance and provides defense solutions like autonomous systems and cyberspace strategies. Sound Shore Management stated the following regarding Huntington Ingalls Industries, Inc. (NYSE:HII) in its fourth quarter 2025 investor letter:

Likewise, Huntington Ingalls Industries, Inc. (NYSE:HII), the largest US Naval shipbuilder, was another standout 2025 performer. HII, as it is also known, constructs nuclear and non-nuclear warships for the Navy and Coast Guard and also provides after-market services for those ships worldwide. We purchased the stock when it was trading at a below normal 13 times earnings with a 7% free cash flow yield. Having worked through the complexity of post-COVID supply chain and labor productivity issues, the stock soared after posting better than expected earnings and dramatic growth in its backlog. With the US Navy’s commitment to rapidly expand the fleet, and the prospect of further margin gains with project completions, we believe the stock is just beginning to reflect its growth potential.

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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