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 Industrials Stocks with Open Questions

GXO Cover Image

Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But their prominence also brings high exposure to the ups and downs of economic cycles. Luckily, their overall demand was steady over the past six months as the industry’s 7.1% return has closely followed the S&P 500.

Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. On that note, here are three industrials stocks that may face trouble.

GXO Logistics (GXO)

Market Cap: $5.91 billion

With notable customers such as Nike and Apple, GXO (NYSE: GXO) manages outsourced supply chains and warehousing for various companies.

Why Does GXO Give Us Pause?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.2% annually while its revenue grew
  3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

At $51.66 per share, GXO Logistics trades at 19.7x forward P/E. Dive into our free research report to see why there are better opportunities than GXO.

Hub Group (HUBG)

Market Cap: $2.24 billion

Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.

Why Do We Avoid HUBG?

  1. Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 41.4% annually, worse than its revenue
  3. Eroding returns on capital suggest its historical profit centers are aging

Hub Group’s stock price of $36.63 implies a valuation ratio of 16.7x forward P/E. To fully understand why you should be careful with HUBG, check out our full research report (it’s free).

Vulcan Materials (VMC)

Market Cap: $35.76 billion

Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.

Why Does VMC Fall Short?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. Number of tons shipped has disappointed over the past two years, indicating weak demand for its offerings
  3. Free cash flow margin dropped by 5.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Vulcan Materials is trading at $270.73 per share, or 32.3x forward P/E. Read our free research report to see why you should think twice about including VMC in your portfolio.

High-Quality Stocks for All Market Conditions

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 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 Comfort Systems (+782% 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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