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 S&P 500 Stocks in Hot Water

HON Cover Image

The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.

Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are three S&P 500 stocks to steer clear of and a few alternatives to consider.

Honeywell (HON)

Market Cap: $143.2 billion

Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.

Why Do We Think Twice About HON?

  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. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.3%
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.2 percentage points

Honeywell is trading at $225.13 per share, or 21.2x forward P/E. If you’re considering HON for your portfolio, see our FREE research report to learn more.

Lockheed Martin (LMT)

Market Cap: $109.7 billion

Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE: LMT) specializes in defense, space, homeland security, and information technology products.

Why Do We Avoid LMT?

  1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.3% over the last five years was below our standards for the industrials sector
  2. Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
  3. Waning returns on capital imply its previous profit engines are losing steam

Lockheed Martin’s stock price of $474 implies a valuation ratio of 16.8x forward P/E. To fully understand why you should be careful with LMT, check out our full research report (it’s free).

STERIS (STE)

Market Cap: $24.72 billion

With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.

Why Are We Cautious About STE?

  1. Adjusted operating margin failed to increase over the last two years, indicating the company couldn’t optimize its expenses
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.1 percentage points
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

At $251 per share, STERIS trades at 25.3x forward P/E. Dive into our free research report to see why there are better opportunities than STE.

High-Quality Stocks for All Market Conditions

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 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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