Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Healthcare Stocks We Keep Off Our Radar

WST Cover Image

Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have caused the industry to lag recently - over the past six months, the collective 8.4% gain for healthcare stocks has fallen short of the S&P 500’s 22.7% rise.

A cautious approach is imperative when dabbling in these businesses as regulation is another unpredictable element that can affect their earnings potential. Taking that into account, here are three healthcare stocks we’re steering clear of.

West Pharmaceutical Services (WST)

Market Cap: $18.82 billion

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

Why Does WST Give Us Pause?

  1. Muted 1.6% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
  2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 3.9 percentage points
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $261 per share, West Pharmaceutical Services trades at 37.3x forward P/E. Read our free research report to see why you should think twice about including WST in your portfolio.

Azenta (AZTA)

Market Cap: $1.37 billion

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ: AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Why Do We Pass on AZTA?

  1. Sales tumbled by 7.2% annually over the last five years, showing market trends are working against its favor during this cycle
  2. Sales were less profitable over the last five years as its earnings per share fell by 18.7% annually, worse than its revenue declines
  3. Free cash flow margin dropped by 22.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Azenta’s stock price of $29.31 implies a valuation ratio of 39.9x forward P/E. To fully understand why you should be careful with AZTA, check out our full research report (it’s free for active Edge members).

Royalty Pharma (RPRX)

Market Cap: $15.57 billion

Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ: RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself.

Why Is RPRX Not Exciting?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.2% annually over the last two years
  2. Subscale operations are evident in its revenue base of $2.31 billion, meaning it has fewer distribution channels than its larger rivals

Royalty Pharma is trading at $36.35 per share, or 7.3x forward P/E. Dive into our free research report to see why there are better opportunities than RPRX.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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