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.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

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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 Mid-Cap Stocks in Hot Water

SGI Cover Image

Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three mid-cap stocks to avoid and some other investments you should consider instead.

Somnigroup (SGI)

Market Cap: $12.88 billion

Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup (NYSE: SGI) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products

Why Are We Cautious About SGI?

  1. Flat sales over the last two years suggest it must innovate and find new ways to grow
  2. Free cash flow margin is forecasted to shrink by 4.6 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Somnigroup is trading at $61.86 per share, or 10.7x forward EV-to-EBITDA. If you’re considering SGI for your portfolio, see our FREE research report to learn more.

Packaging Corporation of America (PKG)

Market Cap: $18.04 billion

Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.

Why Should You Dump PKG?

  1. Disappointing unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
  2. Earnings per share have contracted by 9.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Free cash flow margin shrank by 3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Packaging Corporation of America’s stock price of $202.27 implies a valuation ratio of 17.7x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than PKG.

NetApp (NTAP)

Market Cap: $19.03 billion

Founded in 1992 when the digital storage industry was still in its infancy, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Does NTAP Worry Us?

  1. Sales stagnated over the last two years and signal the need for new growth strategies
  2. Flat billings over the past two years suggest it may need to improve its products, pricing, or go-to-market strategy to reinvigorate demand
  3. Anticipated sales growth of 4% for the next year implies demand will be shaky

At $93.56 per share, NetApp trades at 12.1x forward price-to-earnings. Check out our free in-depth research report to learn more about why NTAP 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 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 United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

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