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 Cash-Producing Stocks in Hot Water

ST Cover Image

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here are three cash-producing companies to avoid and some better opportunities instead.

Sensata Technologies (ST)

Trailing 12-Month Free Cash Flow Margin: 10.8%

Originally a temperature sensor control maker and a subsidiary of Texas Instruments for 60 years, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars.

Why Are We Out on ST?

  1. Annual revenue growth of 2.7% over the last five years was below our standards for the semiconductor sector
  2. Sales are projected to tank by 3.6% over the next 12 months as its demand continues evaporating
  3. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 10.3 percentage points

Sensata Technologies’s stock price of $26.87 implies a valuation ratio of 8.4x forward P/E. Check out our free in-depth research report to learn more about why ST doesn’t pass our bar.

Compass (COMP)

Trailing 12-Month Free Cash Flow Margin: 2%

Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE: COMP) is a digital-first company operating a residential real estate brokerage in the United States.

Why Does COMP Fall Short?

  1. Sluggish trends in its principal agents suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Poor expense management has led to operating margin losses
  3. Poor free cash flow margin of 1.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $6.19 per share, Compass trades at 14.1x forward P/E. If you’re considering COMP for your portfolio, see our FREE research report to learn more.

Select Medical (SEM)

Trailing 12-Month Free Cash Flow Margin: 5.8%

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Why Should You Dump SEM?

  1. Declining admissions over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
  2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
  3. Free cash flow margin shrank by 13.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Select Medical is trading at $15.24 per share, or 13.1x forward P/E. Read our free research report to see why you should think twice about including SEM in your portfolio.

Stocks We Like More

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 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.

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