Last November, the USS Gerald R. Ford carrier strike group sailed into the Caribbean.
About a month later Venezuelan "President" Nicolas Maduro was yanked out of the country by U.S. special forces to stand trial in the United States.
It was a shocking demonstration of America's military might — a mission with layers upon layers of preparation, intelligence, coordination, and capability.
But the fact that it effectively sprung from the sea shouldn't be lost on anyone.
No doubt, America's dedication to air superiority is well documented. But America's fighter jets, bombers, and helicopters wouldn't have a place to land if not for our carrier groups.
To that point, the United States has 11 aircraft carriers. That's as many as the rest of the world combined.
China comes in second with three. Italy, the U.K., and India each have two. And France and Russia just have one each.
President Trump understands this advantage, which is why he's also dispatched another carrier group to the Arabian Sea just south of Iran.
And now he says he might send a second.
"We have an armada that is heading there and another one might be going," Trump said last week.
Trump has been holding out for a supposed "deal" — but let's be real, that's not happening. What he's really doing is waiting to line up a strike just like he did with Venezuela.
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That's not to say he's going to kidnap the ayatollah (though Iran did feel the need to explicitly warn against it).
But he has struck Iran in the past.
As recently as last year, if you recall.
But again, what gives the United States that leverage?
Sea power.
And that's why Trump has also taken a keen interest in remaking America's navy.
It's an initiative he's dubbed the "Golden Fleet."
And that the center of that initiative is Huntington Ingalls Industries (NYSE: HII).
HII is America's preeminent shipbuilder with yards in Newport News, Virginia, and Pascagoula, Mississippi.
It is the sole designer, builder, and refueler of American aircraft carriers. And it's one of just two providers of submarines, including Virginia- and Columbia Columbia-class vessels.
As a result, it is among the chief beneficiaries of an ever-escalating defense budget that's already eclipsed $1 trillion.
Its stock, by and large, has reflected that momentum over the past year, surging roughly 150%.
But last week it took a step back, tumbling 14% after the company missed on earnings.
It was a bit of an overreaction considering the long-term view for the company.
Especially considering the report wasn't even that bad.
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In fact, there was a lot to like about it.
HII reported net income of $4.04 per share for the quarter on $3.48 billion in revenue. Both of those figures improved on 2024 numbers and exceeded Wall Street's expectations.
The company also reported a full-year profit of $605 million, or $15.39 per share, on revenue of $12.48 billion.
The trouble came via an unexpected squeeze in cash flow, which the company said would turn negative in the first quarter of 2026 before rebounding.
The decline was largely the result of aircraft carrier-related cost pressures at its Newport News facility.
But things like this aren't uncommon.
Modern shipbuilding is complicated and capital-intensive, and large naval programs can experience swings in working capital, milestone timing, and risk retirements that cause cash generation to fluctuate.
Additionally, HII is channeled $400 million in capital toward yard capacity to support higher demand and future growth.
And it has a 1.5% dividend to account for.
Still, this has all the makings of a temporary setback.
Because what's not temporary is the Trump administration's effort to resurrect the American shipbuilding industry and crank out more vessels to maintain supremacy over China in the Pacific.
Furthermore, there's a huge amount of momentum behind unmanned ocean vehicles, which are revolutionizing the sea the same way UAVs revolutionized the sky.
I actually recommended HII to my Crow's Nest subscribers back in November and we're still sitting on 25% gain — despite the recent pullback.
Now, I'm telling you because it's a great opportunity to get in.
And if you want to really cash in on President Trump's military build-out, check out my top recommendation for the Golden Dome. That stock is up 120% since I first recommended it. And there's still plenty of room to run.
Fight on,
Jason Simpkins
Simpkins is the founder and editor of Secret Stock Files, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more... He also serves as editor of The Crow's Nest where he analyzes investments beyond the scope of the defense sector.
For more on Jason, check out his editor's page.
Be sure to visit our Angel Investment Research channel on YouTube and tune into Jason's podcasts.
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