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.

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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

1 High-Flying Stock on Our Buy List and 2 to Avoid

BARK Cover Image

Expensive stocks often command premium valuations because the market thinks their business models are exceptional. However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.

Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. That said, here is one high-flying stock with strong fundamentals and two climbing an uphill battle.

Two High-Flying Stocks to Sell:

Bark (BARK)

Forward P/E Ratio: 97.8x

Making a name for itself with the BarkBox, Bark (NYSE: BARK) specializes in subscription-based, personalized pet products.

Why Are We Hesitant About BARK?

  1. Demand for its offerings was relatively low as its number of orders has underwhelmed
  2. Historical operating losses point to an inefficient cost structure
  3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Bark’s stock price of $1.23 implies a valuation ratio of 97.8x forward P/E. To fully understand why you should be careful with BARK, check out our full research report (it’s free).

Penumbra (PEN)

Forward P/E Ratio: 74.3x

Founded in 2004 to address challenging medical conditions with significant unmet needs, Penumbra (NYSE: PEN) develops and manufactures innovative medical devices for treating vascular diseases and providing immersive healthcare rehabilitation solutions.

Why Are We Wary of PEN?

  1. Revenue base of $1.24 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  2. Low free cash flow margin of 3% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
  3. Push for growth has led to negative returns on capital, signaling value destruction

Penumbra is trading at $296.50 per share, or 74.3x forward P/E. Check out our free in-depth research report to learn more about why PEN doesn’t pass our bar.

One High-Flying Stock to Buy:

AZEK (AZEK)

Forward P/E Ratio: 33.7x

With a significant portion of its products made from recycled materials, AZEK (NYSE: AZEK) designs and manufactures goods for outdoor living spaces.

Why Is AZEK a Top Pick?

  1. Average organic revenue growth of 12.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions
  2. Share buybacks catapulted its annual earnings per share growth to 57.4%, which outperformed its revenue gains over the last two years
  3. Free cash flow margin jumped by 8.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $51.49 per share, AZEK trades at 33.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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 176% over the last five years.

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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