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 Small-Cap Stocks Skating on Thin Ice

CSV Cover Image

Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.

These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.

Carriage Services (CSV)

Market Cap: $705.4 million

Established in 1991, Carriage Services (NYSE: CSV) is a provider of funeral and cemetery services in the United States.

Why Do We Think Twice About CSV?

  1. Muted 5.3% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
  2. Underwhelming 9.9% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up

At $44.95 per share, Carriage Services trades at 7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than CSV.

Mayville Engineering (MEC)

Market Cap: $301.8 million

Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE: MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.

Why Do We Steer Clear of MEC?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.5%
  3. Earnings per share were flat while its revenue grew over the last five years, partly because it issued new shares

Mayville Engineering is trading at $14.75 per share, or 4.6x forward EV-to-EBITDA. To fully understand why you should be careful with MEC, check out our full research report (it’s free).

Benchmark (BHE)

Market Cap: $1.38 billion

Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE: BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.

Why Are We Wary of BHE?

  1. Sales tumbled by 5.8% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Low free cash flow margin of 1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
  3. Underwhelming 7.3% return on capital reflects management’s difficulties in finding profitable growth opportunities

Benchmark’s stock price of $38.16 implies a valuation ratio of 14.8x forward P/E. If you’re considering BHE for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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 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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