Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Cadre (NYSE:CDRE) and its peers.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow.
Due to this bearish outlook, the industry has tumbled by 6.6% over the past six months. This drop was worse than the S&P 500’s 1% decline.
Shares of aerospace and defense company Cadre (NYSE:CDRE)
jumped 19.9% in the afternoon session after the company reported a "beat and raise" quarter. First quarter 2025 results beat analysts' revenue, EPS, and EBITDA expectations and included a lift in full-year revenue and EBITDA guidance. Sales were down 6%, mostly because of timing on some big defense orders, but they made up for it with demand in other areas and help from new acquisitions. Zooming out, we think this print featured some important positives.
Aerospace and defense company Cadre (NYSE:CDRE) reported Q1 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 5.6% year on year to $130.1 million. The company’s full-year revenue guidance of $633 million at the midpoint came in 5.8% above analysts’ estimates. Its GAAP profit of $0.23 per share was 91.7% above analysts’ consensus estimates.
Shareholders of Cadre would probably like to forget the past six months even happened. The stock dropped 25.4% and now trades at $30.01. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at aerospace and defense stocks, starting with Cadre (NYSE:CDRE).
Aerospace and defense company Cadre (NYSE:CDRE) reported Q4 CY2024 results beating Wall Street’s revenue expectations, with sales up 41.3% year on year to $176 million. On the other hand, the company’s full-year revenue guidance of $586.5 million at the midpoint came in 5.1% below analysts’ estimates. Its GAAP profit of $0.32 per share was 28.3% below analysts’ consensus estimates.
Cadre currently trades at $38.19 per share and has shown little upside over the past six months, posting a middling return of 0.6%. The stock also fell short of the S&P 500’s 8.1% gain during that period.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the aerospace and defense industry, including Cadre (NYSE:CDRE) and its peers.
Aerospace and defense company Cadre (NYSE:CDRE) missed Wall Street’s revenue expectations in Q3 CY2024, with sales falling 12.6% year on year to $109.4 million. The company’s full-year revenue guidance of $565.5 million at the midpoint came in 1.4% below analysts’ estimates. Its GAAP profit of $0.09 per share was 45.9% above analysts’ consensus estimates.
