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 Consumer Stock with Promising Prospects and 2 to Brush Off

CENT Cover Image

Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. Surprisingly, the sector hasn’t played its shielding role over the past six months as it tumbled 13.9%. This drop was noticeably worse than the S&P 500’s 1.9% decline.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one resilient consumer stock we’ve added to our cart and two we’re steering clear of.

Two Consumer Staples Stocks to Sell:

Central Garden & Pet (CENT)

Market Cap: $2.10 billion

Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ: CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Why Are We Out on CENT?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Projected sales for the next 12 months are flat and suggest demand will be subdued
  3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam

At $36.63 per share, Central Garden & Pet trades at 16.1x forward P/E. If you’re considering CENT for your portfolio, see our FREE research report to learn more.

Herbalife (HLF)

Market Cap: $778.1 million

With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.

Why Does HLF Fall Short?

  1. Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Earnings per share have contracted by 21.7% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Herbalife’s stock price of $7.52 implies a valuation ratio of 3.7x forward P/E. Check out our free in-depth research report to learn more about why HLF doesn’t pass our bar.

One Consumer Staples Stock to Watch:

Altria (MO)

Market Cap: $100.4 billion

Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.

Why Do We Like MO?

  1. Products command premium prices and result in a best-in-class gross margin of 70.2%
  2. Excellent operating margin of 53.6% highlights the efficiency of its business model
  3. Strong free cash flow margin of 42.9% enables it to reinvest or return capital consistently

Altria is trading at $59.69 per share, or 11.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

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 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 183% over the last five years (as of March 31st 2025).

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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.

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