The USD 110.23 support, currently tested, should allow Huntington Ingalls Industries to rally again.

From a fundamental viewpoint, the security is cheap with a P/E Ratio of 13.86x for 2015 and 12.76x for 2016. The current share quote shows a +18% potential to reach the consensus average target price. The very good Surperformance rating that the company enjoys underlines its earnings quality.

Following recent record highs, the stock came back near important thresholds, in the USD 116 area, where stand two supports, one in daily data and the other in weekly data. The relevance of the zone is strengthen by the rising 50-week MA presently at USD 115.
Consequently, investors may open a long position at current prices and target a reversal toward the USD 124 pivot point. A stop loss order should be set at USD 113.5.