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 Cash-Producing Stock to Research Further and 2 to Be Wary Of

EYE Cover Image

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here is one cash-producing company that reinvests wisely to drive long-term success and two that may struggle to keep up.

Two Stocks to Sell:

National Vision (EYE)

Trailing 12-Month Free Cash Flow Margin: 2.5%

Operating under multiple brands, National Vision (NYSE: EYE) sells optical products such as eyeglasses and provides optical services such as eye exams.

Why Do We Pass on EYE?

  1. Reduction in its number of stores signals a focus on profitability through targeted consolidation
  2. Subpar operating margin of 0.3% constrains its ability to invest in process improvements or effectively respond to new competitive threats
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

National Vision’s stock price of $20.71 implies a valuation ratio of 34.8x forward P/E. If you’re considering EYE for your portfolio, see our FREE research report to learn more.

Karat Packaging (KRT)

Trailing 12-Month Free Cash Flow Margin: 10.6%

Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Why Are We Cautious About KRT?

  1. Muted 2.1% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
  2. Earnings per share lagged its peers over the last two years as they only grew by 5.9% annually
  3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Karat Packaging is trading at $31.32 per share, or 11.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than KRT.

One Stock to Watch:

United Parks & Resorts (PRKS)

Trailing 12-Month Free Cash Flow Margin: 12.6%

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

Why Are We Fans of PRKS?

  1. Healthy operating margin of 26.9% shows it’s a well-run company with efficient processes
  2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Returns on capital are climbing as management makes more lucrative bets

At $42.83 per share, United Parks & Resorts trades at 8.8x forward P/E. Is now a good time to buy? Find out in our full 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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