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 Consumer Stocks in the Doghouse

CHDN Cover Image

Consumer discretionary businesses are levered to the highs and lows of economic cycles. This sensitive demand profile can lead to some stock price volatility, but over the past six months, the industry has stayed on track as its 8.1% return was close to the S&P 500’s.

Nevertheless, this stability can be deceiving as many companies in this space lack recurring revenue characteristics and ride short-term fads. On that note, here are three consumer stocks best left ignored.

Churchill Downs (CHDN)

Market Cap: $8.72 billion

Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ: CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States.

Why Are We Wary of CHDN?

  1. Estimated sales growth of 7.6% for the next 12 months implies demand will slow from its two-year trend
  2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3% for the last two years
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Churchill Downs is trading at $119.64 per share, or 17x forward price-to-earnings. If you’re considering CHDN for your portfolio, see our FREE research report to learn more.

La-Z-Boy (LZB)

Market Cap: $1.87 billion

The prized possession of every mancave, La-Z-Boy (NYSE: LZB) is a furniture company specializing in recliners, sofas, and seats.

Why Do We Think LZB Will Underperform?

  1. Products and services have few die-hard fans as sales have declined by 8% annually over the last two years
  2. Anticipated sales growth of 1.8% for the next year implies demand will be shaky
  3. Waning returns on capital imply its previous profit engines are losing steam

La-Z-Boy’s stock price of $45.16 implies a valuation ratio of 13.5x forward price-to-earnings. Read our free research report to see why you should think twice about including LZB in your portfolio.

Marcus & Millichap (MMI)

Market Cap: $1.50 billion

Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Why Do We Steer Clear of MMI?

  1. Products and services aren't resonating with the market as its revenue declined by 2.9% annually over the last five years
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $38.01 per share, Marcus & Millichap trades at 480.9x forward price-to-earnings. Check out our free in-depth research report to learn more about why MMI doesn’t pass our bar.

Stocks We Like More

With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.

Put yourself in the driver’s seat by checking out our Top 9 Market-Beating Stocks. 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 Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.

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