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 Russell 2000 Stocks in Hot Water

LGIH 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. That said, here are three Russell 2000 stocks to steer clear of and some alternatives to watch instead.

LGI Homes (LGIH)

Market Cap: $1.21 billion

Based in Texas, LGI Homes (NASDAQ: LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.

Why Do We Steer Clear of LGIH?

  1. Backlog failed to grow over the past two years, suggesting the company may need to tweak its product roadmap and go-to-market strategy
  2. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $51.56 per share, LGI Homes trades at 6.7x forward P/E. Check out our free in-depth research report to learn more about why LGIH doesn’t pass our bar.

Corcept (CORT)

Market Cap: $7.76 billion

Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.

Why Are We Wary of CORT?

  1. Smaller revenue base of $685.4 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  2. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 16.2 percentage points
  3. 16.1 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

Corcept is trading at $74.80 per share, or 36.2x forward P/E. Read our free research report to see why you should think twice about including CORT in your portfolio.

Community Bank (CBU)

Market Cap: $3.02 billion

Tracing its roots back to 1866 in upstate New York, Community Financial System (NYSE: CBU) is a financial holding company that provides banking, employee benefits, wealth management, and insurance services to retail, commercial, and municipal customers.

Why Are We Hesitant About CBU?

  1. Net interest income trends were unexciting over the last four years as its 5.6% annual growth was below the typical bank company
  2. Net interest margin of 3.1% is well below other banks, signaling its loans aren’t very profitable
  3. Annual tangible book value per share declines of 4.3% for the past five years show its capital management struggled during this cycle

Community Bank’s stock price of $57.11 implies a valuation ratio of 1.6x forward P/B. Dive into our free research report to see why there are better opportunities than CBU.

Stocks We Like More

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-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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