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 Bank Stocks Skating on Thin Ice

WSBC Cover Image

Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. Still, investors are uneasy as banks face challenges from credit quality concerns and potential regulatory changes. These doubts have caused the industry to lag recently as banking stocks have collectively shed 10.1% over the past six months. This performance was disappointing since the S&P 500 stood firm.

A cautious approach is imperative when dabbling in banks as many are sensitive to interest rate changes and economic cycles. On that note, here are three bank stocks we’re passing on.

WesBanco (WSBC)

Market Cap: $3.03 billion

Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ: WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.

Why Are We Hesitant About WSBC?

  1. 2.4% annual net interest income growth over the last four years was slower than its bank peers
  2. Annual tangible book value per share declines of 1.4% for the past five years show its capital management struggled during this cycle
  3. Low interest coverage ratio indicates the company may struggle to service its debt obligations if operational performance deteriorates

WesBanco’s stock price of $31.70 implies a valuation ratio of 0.8x forward P/B. If you’re considering WSBC for your portfolio, see our FREE research report to learn more.

Synovus Financial (SNV)

Market Cap: $6.81 billion

Tracing its roots back to 1888 when a worker accidentally dropped a textile mill payroll into the dust, prompting the need for better banking, Synovus Financial (NYSE: SNV) is a regional financial services company that provides commercial and consumer banking, wealth management, and specialized lending services across five southeastern states.

Why Does SNV Fall Short?

  1. Annual net interest income growth of 4.2% over the last four years was below our standards for the bank sector
  2. Inferior net interest margin of 3.2% means it must compensate for lower profitability through increased loan originations
  3. Muted 2.9% annual tangible book value per share growth over the last five years shows its capital generation lagged behind its bank peers

Synovus Financial is trading at $48.97 per share, or 1.3x forward P/B. Read our free research report to see why you should think twice about including SNV in your portfolio.

U.S. Bancorp (USB)

Market Cap: $68.86 billion

With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.

Why Do We Think Twice About USB?

  1. Sizable revenue base leads to growth challenges as its 6.7% annual net interest income increases over the last four years fell short of other bank companies
  2. Weak unit economics are reflected in its net interest margin of 2.8%, one of the worst among bank companies
  3. Large asset base makes it harder to grow tangible book value quickly, and its annual tangible book value per share growth of 1.3% over the last five years was below our standards for the bank sector

At $44.50 per share, U.S. Bancorp trades at 1.2x forward P/B. To fully understand why you should be careful with USB, check out our full research report (it’s free).

Stocks We Like 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today.

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