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 Small-Cap Stock to Research Further and 2 to Keep Off Your Radar

WK Cover Image

Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.

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 is one small-cap stock that could amplify your portfolio’s returns and two best left ignored.

Two Small-Cap Stocks to Sell:

U.S. Physical Therapy (USPH)

Market Cap: $1.17 billion

With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy (NYSE: USPH) operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.

Why Does USPH Give Us Pause?

  1. Smaller revenue base of $699.5 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  2. Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
  3. Free cash flow margin shrank by 14.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

U.S. Physical Therapy’s stock price of $77.34 implies a valuation ratio of 28.6x forward P/E. To fully understand why you should be careful with USPH, check out our full research report (it’s free).

Premier (PINC)

Market Cap: $1.84 billion

Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ: PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.

Why Is PINC Risky?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 9.3% annually over the last two years
  2. Projected sales decline of 10.6% over the next 12 months indicates demand will continue deteriorating
  3. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

Premier is trading at $22.30 per share, or 16.6x forward P/E. Read our free research report to see why you should think twice about including PINC in your portfolio.

One Small-Cap Stock to Watch:

Workiva (WK)

Market Cap: $3.78 billion

Founded in 2010, Workiva (NYSE: WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.

Why Are We Positive On WK?

  1. ARR growth averaged 19.5% over the last year, showing customers are willing to take multi-year bets on its offerings
  2. Sales outlook for the upcoming 12 months implies the business will have more momentum than most peers
  3. Superior software functionality and low servicing costs are reflected in its premier gross margin of 76.7%

At $67.81 per share, Workiva trades at 4.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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