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 Russell 2000 Stocks in the Doghouse

SHLS Cover Image

Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.

Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here are three Russell 2000 stocks to avoid and better alternatives to consider.

Shoals (SHLS)

Market Cap: $852.6 million

Started in Huntsville, Alabama, Shoals (NASDAQ: SHLS) designs and manufactures products that make solar energy systems work more efficiently.

Why Are We Hesitant About SHLS?

  1. Backlog growth averaged a weak 2.7% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
  2. Earnings per share have contracted by 2% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Shoals’s stock price of $5.13 implies a valuation ratio of 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than SHLS.

Genco (GNK)

Market Cap: $580 million

Headquartered in NYC, Genco (NYSE: GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.

Why Do We Steer Clear of GNK?

  1. Number of owned vessels has disappointed over the past two years, indicating weak demand for its offerings
  2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
  3. Free cash flow margin dropped by 6.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Genco is trading at $13.50 per share, or 20.6x forward P/E. Check out our free in-depth research report to learn more about why GNK doesn’t pass our bar.

AMC Entertainment (AMC)

Market Cap: $1.45 billion

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.

Why Does AMC Give Us Pause?

  1. Annual sales declines of 2.7% for the past five years show its products and services struggled to connect with the market
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $3.37 per share, AMC Entertainment trades at 2.4x forward EV-to-EBITDA. To fully understand why you should be careful with AMC, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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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