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

2 Russell 2000 Stocks with Promising Prospects and 1 to Question

IPAR 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 two Russell 2000 stocks that could be the next big thing and one best left off your watchlist.

One Stock to Sell:

Latham (SWIM)

Market Cap: $654.1 million

Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Why Are We Cautious About SWIM?

  1. Annual sales declines of 14.5% for the past two years show its products and services struggled to connect with the market
  2. Incremental sales over the last four years were much less profitable as its earnings per share fell by 21.4% annually while its revenue grew
  3. Negative returns on capital show that some of its growth strategies have backfired

Latham is trading at $5.55 per share, or 52.2x forward P/E. Read our free research report to see why you should think twice about including SWIM in your portfolio.

Two Stocks to Watch:

Inter Parfums (IPAR)

Market Cap: $3.50 billion

With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.

Why Are We Backing IPAR?

  1. Annual revenue growth of 18.2% over the last three years was superb and indicates its market share is rising
  2. Differentiated product offerings are difficult to replicate at scale and result in a premier gross margin of 58.7%
  3. Free cash flow margin jumped by 5.1 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Inter Parfums’s stock price of $109.04 implies a valuation ratio of 20.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

SmartRent (SMRT)

Market Cap: $184.8 million

Founded by an employee at a real estate rental company, SmartRent (NYSE: SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.

Why Could SMRT Be a Winner?

  1. Impressive 35.1% annual revenue growth over the last four years indicates it’s winning market share this cycle
  2. Ability to secure long-term commitments with customers is evident in its 41.5% average ARR growth over the past two years
  3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 52.1% over the last two years outstripped its revenue performance

At $0.96 per share, SmartRent trades at 1.2x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 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 Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.

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