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 Profitable Stocks Skating on Thin Ice

OLPX Cover Image

A company with profits isn’t always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.

Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here are three profitable companies to steer clear of and a few better alternatives.

Olaplex (OLPX)

Trailing 12-Month GAAP Operating Margin: 13.3%

Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.

Why Do We Steer Clear of OLPX?

  1. Products have few die-hard fans as sales have declined by 14.2% annually over the last three years
  2. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
  3. Free cash flow margin shrank by 16.1 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

Olaplex’s stock price of $1.45 implies a valuation ratio of 19.6x forward P/E. To fully understand why you should be careful with OLPX, check out our full research report (it’s free).

Somnigroup (SGI)

Trailing 12-Month GAAP Operating Margin: 9.6%

Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup (NYSE: SGI) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products

Why Are We Cautious About SGI?

  1. 4.6% annual revenue growth over the last two years was slower than its consumer discretionary peers
  2. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
  3. High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $65.30 per share, Somnigroup trades at 22.8x forward P/E. Read our free research report to see why you should think twice about including SGI in your portfolio.

Universal Health Services (UHS)

Trailing 12-Month GAAP Operating Margin: 10.9%

With a network spanning 39 states and three countries, Universal Health Services (NYSE: UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico.

Why Does UHS Give Us Pause?

  1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 7.1% over the last five years was below our standards for the healthcare sector
  2. Poor comparable store sales performance over the past two years indicates it’s having trouble bringing new patients into its facilities
  3. 3.1 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

Universal Health Services is trading at $171.70 per share, or 8.7x forward P/E. Check out our free in-depth research report to learn more about why UHS doesn’t pass our bar.

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 5 Growth Stocks for this month. 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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