5 Best Small Cap Stocks to Buy with Highest Upside Potential

2. HawkEye 360, Inc. (NYSE:HAWK)

Analyst Upside: 107.58%

HawkEye 360, Inc. (NYSE:HAWK) is one of the best small cap stocks to buy with the highest upside potential. RBC Capital cut the price target on HawkEye 360, Inc. (NYSE:HAWK) to $33 from $40 on June 23 and maintained an Outperform rating on the shares. The firm told investors in a research note that the company reported results that were in line with the management’s pre-announced metrics, as its international growth of 157% was encouraging, with both new and existing customers driving the growth. The firm further stated that it expects HawkEye 360, Inc. (NYSE:HAWK) to provide an inaugural guide for 2026 with its fiscal Q2 earnings release.

For reference, in its financial results for fiscal Q1 2026, HawkEye 360, Inc. (NYSE:HAWK) reported record revenue of $49.8 million, up 116.5% compared to the prior-year period of $23.0 million. The company also attained record international revenue of $20.9 million, up 156.8% compared to the prior-year period of $8.1 million. In addition, it realised record adjusted EBITDA, a non-GAAP metric, of $7.4 million, up 92.1% compared to the prior-year period of $3.8 million.

HawkEye 360, Inc. (NYSE:HAWK) is involved in the provision of defence technology, with its offerings including maritime intelligence, spectrum monitoring, air defence radar monitoring, GNSS interference detection, and communications mapping.