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 Consumer Stocks Skating on Thin Ice

BFAM Cover Image

Consumer discretionary businesses are levered to the highs and lows of economic cycles. Over the past six months, it seems like demand may be facing some headwinds as the industry’s 1.8% return has lagged the S&P 500 by 5.9 percentage points.

Investors should tread carefully as many companies in this space are also unpredictable because they lack recurring revenue business models. On that note, here are three consumer stocks we’re passing on.

Bright Horizons (BFAM)

Market Cap: $6.67 billion

Founded in 1986, Bright Horizons (NYSE: BFAM) is a global provider of child care, early education, and workforce support solutions.

Why Should You Sell BFAM?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Incremental sales over the last five years were less profitable as its 1.8% annual earnings per share growth lagged its revenue gains
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $116.58 per share, Bright Horizons trades at 28x forward P/E. To fully understand why you should be careful with BFAM, check out our full research report (it’s free).

Latham (SWIM)

Market Cap: $807.6 million

Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Why Does SWIM Give Us Pause?

  1. Products and services aren't resonating with the market as its revenue declined by 10.9% annually over the last two years
  2. Operating margin of 3.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
  3. Negative returns on capital show management lost money while trying to expand the business

Latham is trading at $7.04 per share, or 50x forward P/E. If you’re considering SWIM for your portfolio, see our FREE research report to learn more.

European Wax Center (EWCZ)

Market Cap: $239 million

Founded by two siblings, European Wax Center (NASDAQ: EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.

Why Are We Hesitant About EWCZ?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
  2. Forecasted revenue decline of 1.4% for the upcoming 12 months implies demand will fall off a cliff
  3. Flat earnings per share over the last three years lagged its peers

European Wax Center’s stock price of $5.75 implies a valuation ratio of 17.9x forward P/E. Read our free research report to see why you should think twice about including EWCZ in your portfolio.

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 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% 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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