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 Russell 2000 Stocks We Steer Clear Of

PI Cover Image

The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.

The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we’re here to guide you toward the right ones. That said, here are three Russell 2000 stocks to avoid and better alternatives to consider.

Impinj (PI)

Market Cap: $5.32 billion

Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.

Why Are We Wary of PI?

  1. Historical operating margin losses point to an inefficient cost structure
  2. Negative returns on capital show that some of its growth strategies have backfired

Impinj’s stock price of $179 implies a valuation ratio of 93.7x forward P/E. Read our free research report to see why you should think twice about including PI in your portfolio.

Cars.com (CARS)

Market Cap: $747.8 million

Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE: CARS) is a digital marketplace that connects new and used car buyers and sellers.

Why Are We Hesitant About CARS?

  1. Dealer Customers have stagnated over the last two years, indicating its platform may be struggling to differentiate itself from competitors
  2. Estimated sales growth of 2% for the next 12 months implies demand will slow from its three-year trend
  3. Earnings per share have dipped by 1.8% annually over the past three years, which is concerning because stock prices follow EPS over the long term

At $11.75 per share, Cars.com trades at 3.6x forward EV/EBITDA. To fully understand why you should be careful with CARS, check out our full research report (it’s free).

Alight (ALIT)

Market Cap: $1.70 billion

Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE: ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.

Why Is ALIT Risky?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.5% annually over the last five years
  2. Earnings per share have contracted by 6% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Alight is trading at $3.17 per share, or 5.1x forward P/E. If you’re considering ALIT for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

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