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 Healthcare Stocks with Questionable Fundamentals

TFX Cover Image

Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand. The result? Over the past six months, the industry has tumbled by 7.5%. This drop was disheartening since the S&P 500 held its ground.

Investors should tread carefully as the influx of venture capital has also ushered in a new wave of competition. Keeping that in mind, here are three healthcare stocks we’re swiping left on.

Teleflex (TFX)

Market Cap: $5.61 billion

With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE: TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.

Why Is TFX Not Exciting?

  1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
  2. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 3.3% annually
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $126.86 per share, Teleflex trades at 8.7x forward P/E. Read our free research report to see why you should think twice about including TFX in your portfolio.

Brookdale (BKD)

Market Cap: $1.58 billion

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Why Are We Hesitant About BKD?

  1. Annual sales declines of 4.8% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Underwhelming -0.8% return on capital reflects management’s difficulties in finding profitable growth opportunities
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Brookdale’s stock price of $6.73 implies a valuation ratio of 3.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BKD doesn’t pass our bar.

Progyny (PGNY)

Market Cap: $1.87 billion

Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.

Why Are We Cautious About PGNY?

  1. Revenue base of $1.21 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  2. Estimated sales growth of 2.7% for the next 12 months implies demand will slow from its two-year trend
  3. Push for growth has led to negative returns on capital, signaling value destruction

Progyny is trading at $21.50 per share, or 13.3x forward P/E. If you’re considering PGNY for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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