Is Cadre Holdings Inc. (CDRE) the Best Small-Cap Defense Stock to Buy Right Now?

Cadre Holdings, Inc. (NYSE:CDRE) is among the 8 Best Small-Cap Defense Stocks to Buy Right Now, with an upside potential of 12.90% as of the close of business on November 14.

Is Cadre Holdings, Inc. (CDRE) the Best Small-Cap Defense Stock to Buy Right Now?

On November 6, B. Riley lifted its price target on the stock to $62 from $50 while maintaining a Buy rating. The adjustment followed the company’s third-quarter earnings beat. In a research note to investors, the firm said Cadre was on track for continued growth, amid robust demand across public safety and nuclear end markets.

In Q3, Cadre Holdings, Inc. (NYSE:CDRE)’s net sales surged 42.5% year-over-year to $155.9 million, with the gain attributed to strong demand for armor and duty gear products and recent acquisitions. Gross profit margin improved from 36.6% in the prior year’s quarter to 42.7%.

Net income stood at $10.9 million for the three months, up from $3.7 million in Q3 2024, driven by improved gross profit. Diluted EPS stood at $0.27, up from $0.09 during the same period last year. EPS beat estimates by one cent.

The company reaffirmed its full-year outlook for 2025. Net sales are expected in the range of $624 million to $630 million, with adjusted EBITDA between $112 million and $116 million. The company did not provide guidance for net income, citing challenges in projecting certain metrics.

During the earnings call, Cadre’s management cited current national defense initiatives, rising spending worldwide, and an increase in global safety threats as tailwinds that could drive sustainable growth for the company over the long run.

Cadre Holdings, Inc. (NYSE:CDRE) manufactures and distributes safety equipment for law enforcement, military, and nuclear markets. The stock has had impressive returns in 2025, gaining 33% year-to-date.

While we acknowledge the risk and potential of CDRE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CDRE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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