Huntington Ingalls Industries (NYSE:HII) shareholders have returned 22% over the past year
If you want to accumulate wealth in the stock market, you can do so by buying an index fund. But you can dramatically increase your returns by picking above-average stocks. Namely, the Huntington Ingalls Industries, Inc. (NYSE:HII) the stock price is 19% higher than it was a year ago, much better than the market return of around 8.2% (excluding dividends) during the same period. If he can maintain this outperformance over the long term, investors will do very well! In contrast, longer-term shareholders have had a tougher run, with the stock falling 9.1% in three years.
So let’s examine and see if the long-term performance of the business has been consistent with the progress of the underlying business.
Check out our latest analysis for Huntington Ingalls Industries
While markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just underlying trading performance. By comparing earnings per share (EPS) and share price changes over time, we can get an idea of how investors’ attitudes toward a company change over time.
Huntington Ingalls Industries was able to increase EPS by 14% over the last twelve months. The 19% share price gain certainly outpaced EPS growth. It is therefore fair to assume that the market has a better opinion of the company than a year ago.
The company’s earnings per share (over time) is shown in the image below (click to see exact numbers).
We know that Huntington Ingalls Industries has recently improved its results, but will it increase its revenue? You could check this free report showing analyst revenue forecast.
What about dividends?
In addition to measuring share price performance, investors should also consider total shareholder return (TSR). While the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they have been reinvested) and the benefit of any capital raising or spin-offs. off updated. It can be said that the TSR gives a more complete picture of the return generated by a stock. We note that for Huntington Ingalls Industries, the TSR over the past year was 22%, which is better than the stock price return mentioned above. The dividends paid by the company thus inflated the total return to shareholders.
A different perspective
We are pleased to report that Huntington Ingalls Industries shareholders received a 22% year-over-year total shareholder return. Of course, this includes the dividend. That’s better than the 0.5% annualized return over half a decade, implying that the company has been doing better recently. Someone with an optimistic outlook might see the recent improvement in TSR as indicating that the company itself is improving over time. It is always interesting to follow the evolution of the share price over the long term. But to better understand Huntington Ingalls Industries, we need to consider many other factors. Take risks, for example – Huntington Ingalls Industries has 3 warning signs we think you should know.
We’ll like Huntington Ingalls Industries better if we see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.