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

Core Insights - Cadre Holdings, Inc. is recognized as one of the best small-cap defense stocks to buy, with an upside potential of 12.90% as of November 14 [1] - B. Riley raised its price target for Cadre from $50 to $62, maintaining a Buy rating following a strong Q3 earnings report [2] - The company reported a 42.5% year-over-year increase in net sales for Q3, reaching $155.9 million, driven by demand for armor and duty gear products [3] Financial Performance - Gross profit margin improved from 36.6% to 42.7% year-over-year [3] - Net income for Q3 was $10.9 million, up from $3.7 million in Q3 2024, with diluted EPS increasing to $0.27 from $0.09 [3] - The company reaffirmed its full-year outlook for 2025, expecting net sales between $624 million and $630 million and adjusted EBITDA between $112 million and $116 million [4] Market Position and Growth Drivers - Management highlighted national defense initiatives, increased global spending, and rising safety threats as factors that could support long-term growth [5] - Cadre Holdings manufactures and distributes safety equipment for law enforcement, military, and nuclear markets [5] - The stock has gained 33% year-to-date in 2025, indicating strong market performance [5]