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 Industrials Stocks in Hot Water

FIP Cover Image

Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and investors seem to be forecasting a downturn - over the past six months, the industry has pulled back by 6%. This performance was disheartening since the S&P 500 held steady.

A cautious approach is imperative when dabbling in these companies as the losers can be left for dead when the cycle naturally turns and the winners consolidate. With that said, here are three industrials stocks that may face trouble.

FTAI Infrastructure (FIP)

Market Cap: $564 million

Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.

Why Is FIP Not Exciting?

  1. Poor expense management has led to operating losses
  2. Revenue growth over the past three years was nullified by the company’s new share issuances as its earnings per share fell by 45.7% annually
  3. Cash burn makes us question whether it can achieve sustainable long-term growth

FTAI Infrastructure’s stock price of $5.20 implies a valuation ratio of 2.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including FIP in your portfolio.

Carrier Global (CARR)

Market Cap: $56.53 billion

Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Why Do We Avoid CARR?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. 7.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $65.36 per share, Carrier Global trades at 21.9x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than CARR.

Ameresco (AMRC)

Market Cap: $554.8 million

Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE: AMRC) provides energy and renewable energy solutions for various sectors.

Why Does AMRC Give Us Pause?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.5% annually over the last two years
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Ameresco is trading at $10.70 per share, or 6.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why AMRC doesn’t pass our bar.

Stocks We Like More

The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.

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