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

2 Russell 2000 Stocks with Promising Prospects and 1 to Avoid

PLAB 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.

The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we’re here to guide you toward the right ones. That said, here are two Russell 2000 stocks that could deliver strong gains and one that may face some trouble.

One Stock to Sell:

MarineMax (HZO)

Market Cap: $545.9 million

Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE: HZO) sells boats, yachts, and other marine products.

Why Are We Wary of HZO?

  1. Store closures and poor same-store sales reveal weak demand and a push toward operational efficiency
  2. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

MarineMax’s stock price of $25.42 implies a valuation ratio of 9.7x forward P/E. Check out our free in-depth research report to learn more about why HZO doesn’t pass our bar.

Two Stocks to Watch:

Photronics (PLAB)

Market Cap: $1.10 billion

Sporting a global footprint of facilities, Photronics (NASDAQ: PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.

Why Does PLAB Stand Out?

  1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 31.7% exceeded its revenue gains over the last five years
  3. Industry-leading 25.4% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities

At $18.30 per share, Photronics trades at 8.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Live Oak Bancshares (LOB)

Market Cap: $1.28 billion

Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE: LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.

Why Should You Buy LOB?

  1. Annual net interest income growth of 14.5% over the last four years was superb and indicates its market share increased during this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 45% over the last five years outstripped its revenue performance
  3. Annual tangible book value per share growth of 11.3% over the past five years was outstanding, reflecting strong capital accumulation this cycle

Live Oak Bancshares is trading at $27.97 per share, or 1.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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

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