CATALYST DOSSIER · UPDATED 2026-11-05
$HII
defense · convergence -4 · conviction WATCH
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Why $HII?
Quantitative
Revenue (CY2026Q2) : $3.42B (+10.9% YoY)
Net Income (CY2026Q2) : $208.0M (+36.8% YoY)
Net Margin (CY2026Q3) : 6.1%
Catalysts
Corporate action : spinoff 2026-10-20
Risks
Position-sizing discipline : Conviction WATCH (-4 score) — size accordingly; no specific catalyst-fade risk flagged
Bear case
Multiple compression : If breadth deteriorates, defense-wide multiples re-rate lower regardless of pick-specific thesis
Sympathy basket (cerebro)
LMT via defense r=+0.00 intra-sector (score 2)
BA via defense r=+0.00 intra-sector (score -1)
LDOS via defense r=+0.00 intra-sector (score -4)
RTX via defense r=+0.00 intra-sector (score -4)
NOC via defense r=+0.00 intra-sector (score -7)
GD via defense r=+0.00 intra-sector (score -8)
Signals Firing
orphan_lean audit_extras auto_macro_adp_payrolls auto_macro_durable_goods auto_macro_fx_rates
Pick Track Record Date List Next-day max run Next-day close Hit +2%? 2026-10-29 sec_top_gappers +2.0% +0.2% ✓ hit 2026-10-29 sec_top_moat_emerging +2.0% +0.2% ✓ hit 2026-10-20 sec_clean_gappers +2.6% +0.6% ✓ hit 2026-10-20 sec_top_gappers +2.6% +0.6% ✓ hit 2026-10-20 sec_top_moat_emerging +2.6% +0.6% ✓ hit 2026-09-14 sec_top_gappers +0.3% -0.2% — 2026-09-14 sec_top_moat_emerging +0.3% -0.2% —
Lifetime: 5/7 wins · hit-rate 71.4% on +2% intraday
Sympathy Basket LMT via defense · score 2 BA via defense · score -1 LDOS via defense · score -4 RTX via defense · score -4 NOC via defense · score -7 GD via defense · score -8
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