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 Services Stocks Walking a Fine Line

WLY Cover Image

Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 6.3%. This drawdown was discouraging since the S&P 500 held steady.

A cautious approach is imperative when dabbling in these companies as many are also sensitive to the ebbs and flows of the broader economy. With that said, here are three services stocks we’re steering clear of.

Wiley (WLY)

Market Cap: $2.33 billion

With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE: WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.

Why Should You Sell WLY?

  1. Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Earnings per share were flat over the last two years and fell short of the peer group average
  3. 4.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $43.20 per share, Wiley trades at 17.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including WLY in your portfolio.

EPAM (EPAM)

Market Cap: $10.53 billion

Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.

Why Does EPAM Worry Us?

  1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.3 percentage points
  3. Eroding returns on capital suggest its historical profit centers are aging

EPAM’s stock price of $185.89 implies a valuation ratio of 17.1x forward P/E. Check out our free in-depth research report to learn more about why EPAM doesn’t pass our bar.

Hewlett Packard Enterprise (HPE)

Market Cap: $23.28 billion

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Why Does HPE Give Us Pause?

  1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.8% over the last five years was below our standards for the business services sector
  2. Revenue growth over the past two years was nullified by the company’s new share issuances as its earnings per share fell by 3.1% annually
  3. ROIC of 2.9% reflects management’s challenges in identifying attractive investment opportunities

Hewlett Packard Enterprise is trading at $17.65 per share, or 8.2x forward P/E. Dive into our free research report to see why there are better opportunities than HPE.

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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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