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

3 Consumer Stocks with Questionable Fundamentals

KTB Cover Image

The performance of consumer discretionary businesses is closely linked to economic cycles. Over the past six months, it seems like demand trends are working against their favor as the industry has tumbled by 11.4%. This drop was especially disheartening since the S&P 500 held steady.

While some companies have durable competitive advantages that enable them to grow consistently, the odds aren’t great for the ones we’re analyzing today. Keeping that in mind, here are three consumer stocks best left ignored.

Kontoor Brands (KTB)

Market Cap: $3.79 billion

Founded in 2019 after separating from VF Corporation, Kontoor Brands (NYSE: KTB) is a clothing company known for its high-quality denim products.

Why Is KTB Not Exciting?

  1. Products and services fail to spark excitement with consumers, as seen in its flat sales over the last two years
  2. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
  3. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 9.4% annually

Kontoor Brands is trading at $68.27 per share, or 13.9x forward P/E. If you’re considering KTB for your portfolio, see our FREE research report to learn more.

FOX (FOXA)

Market Cap: $23.25 billion

Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.

Why Should You Sell FOXA?

  1. Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.9% for the last two years
  2. Projected sales decline of 4.3% for the next 12 months points to a tough demand environment ahead

At $54.10 per share, FOX trades at 13.6x forward P/E. Check out our free in-depth research report to learn more about why FOXA doesn’t pass our bar.

Marcus & Millichap (MMI)

Market Cap: $1.18 billion

Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Why Should You Dump MMI?

  1. Sales tumbled by 3.2% annually over the last five years, showing consumer trends are working against its favor
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Eroding returns on capital suggest its historical profit centers are aging

Marcus & Millichap’s stock price of $30.20 implies a valuation ratio of 301.8x forward P/E. To fully understand why you should be careful with MMI, check out our full research report (it’s free).

Stocks We Like More

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 6 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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