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

1 Russell 2000 Stock with Impressive Fundamentals and 2 to Question

MNRO Cover Image

The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.

Picking the right small caps isn’t easy, and that’s exactly why StockStory exists - to help you focus on the best opportunities. Keeping that in mind, here is one Russell 2000 stock that could be the next big thing and two that may face some trouble.

Two Stocks to Sell:

Monro (MNRO)

Market Cap: $459.4 million

Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Why Is MNRO Risky?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
  2. Modest revenue base of $1.20 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
  3. Earnings per share have contracted by 24.4% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance

Monro’s stock price of $15.50 implies a valuation ratio of 18.6x forward P/E. If you’re considering MNRO for your portfolio, see our FREE research report to learn more.

FARO (FARO)

Market Cap: $814.6 million

Launched by two PhD students in a garage, FARO (NASDAQ: FARO) provides 3D measurement and imaging systems for the manufacturing, construction, engineering, and public safety industries.

Why Is FARO Not Exciting?

  1. Annual sales declines of 1.5% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Persistent operating margin losses suggest the business manages its expenses poorly
  3. Cash burn makes us question whether it can achieve sustainable long-term growth

At $42.31 per share, FARO trades at 38.2x forward P/E. Check out our free in-depth research report to learn more about why FARO doesn’t pass our bar.

One Stock to Buy:

EXL (EXLS)

Market Cap: $7.48 billion

Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.

Why Do We Love EXLS?

  1. Annual revenue growth of 13.8% over the last five years was superb and indicates its market share increased during this cycle
  2. Share buybacks catapulted its annual earnings per share growth to 22.6%, which outperformed its revenue gains over the last five years
  3. Robust free cash flow margin of 11.5% gives it many options for capital deployment

EXL is trading at $45.57 per share, or 23.8x forward P/E. 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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