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 with Competitive Advantages and 2 to Be Wary Of

THR Cover Image

Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one small-cap stock that could be the next big thing and two that may have trouble.

Two Small-Cap Stocks to Sell:

Exponent (EXPO)

Market Cap: $3.70 billion

With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ: EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.

Why Are We Cautious About EXPO?

  1. Annual revenue growth of 4.5% over the last two years was below our standards for the business services sector
  2. Revenue base of $518.7 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Exponent is trading at $73.40 per share, or 34.8x forward P/E. Check out our free in-depth research report to learn more about why EXPO doesn’t pass our bar.

Hope Bancorp (HOPE)

Market Cap: $1.30 billion

With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.

Why Do We Pass on HOPE?

  1. Annual net interest income declines of 3.2% for the past four years show its loan book struggled during this cycle
  2. Efficiency ratio worsened by 15.9 percentage points over the last four years as its sales cratered
  3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

Hope Bancorp’s stock price of $9.97 implies a valuation ratio of 0.6x forward P/B. If you’re considering HOPE for your portfolio, see our FREE research report to learn more.

One Small-Cap Stock to Watch:

Thermon (THR)

Market Cap: $894.4 million

Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.

Why Does THR Stand Out?

  1. Offerings are mission-critical for businesses and result in a top-tier gross margin of 42.8%
  2. Operating margin expanded by 11.6 percentage points over the last five years as it scaled and became more efficient
  3. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 20.8% annually, topping its revenue gains

At $27.03 per share, Thermon trades at 13.3x forward P/E. Is now a good time to buy? 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-small-cap company Exlservice (+354% 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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