Workers at Newport News Shipbuilding, a division of Huntington Ingalls Industries, in Newport News, Va.The Associated Press
Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Virginia-based Huntington Ingalls Industries designs, builds, overhauls and repairs ships for the United States Navy and the United States Coast Guard. It trades for 16.4x EPS.
The company has an 11.5-per-cent earnings yield using the Joel Greenblatt-inspired model's EBIT / enterprise value metric.
Huntington Ingalls has grown EPS at a 34-per-cent clip over the long term (using an average of three- and five-year EPS growth rates), which is part of why it gets some interest from the Peter Lynch model. That model also likes its 0.49 yield-adjusted P/E-to-growth ratio.
The James O'Shaughnessy-based growth model likes that it has upped its EPS in each year of the past half decade. That approach also likes the company's combination of a strong 12-month relative strength of 89 and a reasonable price/sales ratio of 1.01.
The Martin Zweig-based model likes that earnings growth has been accelerating: 60 per cent last quarter vs 34 per cent long-term.
The company as a 31% return on equity.
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