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 Healthcare Stocks Skating on Thin Ice

SOLV Cover Image

From novel pharmaceuticals to telemedicine, most healthcare companies are on a mission to drive better patient outcomes. But speed bumps such as inventory destockings have persisted in the wake of COVID-19, and over the past six months, the industry has pulled back by 13.2%. This drawdown was noticeably worse than the S&P 500’s 2.4% loss.

A cautious approach is imperative when dabbling in these businesses as regulation is another unpredictable element that can affect their earnings potential. Taking that into account, here are three healthcare stocks we’re swiping left on.

Solventum (SOLV)

Market Cap: $12.65 billion

Founded in 1985, Solventum (NYSE: SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.

Why Does SOLV Fall Short?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 4.2 percentage points
  3. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 21.9% annually

Solventum’s stock price of $73.09 implies a valuation ratio of 12.9x forward P/E. Check out our free in-depth research report to learn more about why SOLV doesn’t pass our bar.

Integer Holdings (ITGR)

Market Cap: $4.14 billion

With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.

Why Are We Hesitant About ITGR?

  1. 6.5% annual revenue growth over the last five years was slower than its healthcare peers
  2. Smaller revenue base of $1.75 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  3. 7.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $118.76 per share, Integer Holdings trades at 18.9x forward P/E. Read our free research report to see why you should think twice about including ITGR in your portfolio.

Patterson Companies (PDCO)

Market Cap: $2.77 billion

With roots dating back to 1877 and serving over 150,000 customers across North America and the UK, Patterson Companies (NASDAQ: PDCO) is a specialty distributor that supplies dental practices and animal health professionals with equipment, consumables, pharmaceuticals, and practice management software.

Why Are We Cautious About PDCO?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
  3. Negative free cash flow raises questions about the return timeline for its investments

Patterson Companies is trading at $31.34 per share, or 13.6x forward P/E. To fully understand why you should be careful with PDCO, 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.

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