HawkEye 360, Inc. (NYSE:HAWK) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. Cramer highlighted that he likes it “very much,” as he commented:

The numbers here are pretty… impressive… HawkEye is not yet free cash flow positive. Okay, that is not ideal, but then again, you burn a lot of cash upfront when you put up the satellites in the sky. Second, the company does have a pristine balance sheet with over $400 million in cash and equivalents alongside zero debt. Third, HawkEye’s backlog has exploded over the past couple of years, climbing from $44 million at the end of 2024 to nearly $303 million at the end of last year. That’s fantastic. Management did say that it came down to $285 million by the end of March, but still, that’s a great number. More than double last year’s revenue total, and most of that backlog growth was organic, coming from the new contracts and the expansion of existing contracts rather than the ISA acquisition.

…Organic means that it’s from… they didn’t buy growth. So far, I’m a big fan of HawkEye 360, but what about HawkEye 360, the stock? Two different things. At $33 and change, the thing has a market capitalization of $3.1 billion and an enterprise value of $2.7 billion… Now, candidly, HawkEye’s valuation is a bit rich regardless of how you look at it…

Here’s the bottom line: I like this HawkEye 360 very much, and I think, guess what? I think this stock can be bought right here after its strong debut. This represents a unique story, a unique opportunity, very different from your typical satellite play, let alone any other defense contractor I follow. The numbers look good. The valuation’s justifiable even if the stock’s not dirt cheap, and that’s why I think that HawkEye 360 is a buy.

Photo by Joshua Mayo on Unsplash

HawkEye 360, Inc. (NYSE:HAWK) operates a satellite constellation that provides radio frequency intelligence and signal processing to defense and national security agencies. The company offers specialized tracking of radars, communications, and maritime activity to deliver tactical insights for battlefield and border security.

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