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

1 Services Stock for Long-Term Investors and 2 to Brush Off

COHR Cover Image

Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have certainly contributed to the industry’s recent underperformance - over the past six months, services stocks were flat while the S&P 500 was up 7.1%.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one services stock boasting a durable advantage and two we’re passing on.

Two Business ServicesStocks to Sell:

Connection (CNXN)

Market Cap: $1.68 billion

Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ: CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.

Why Do We Avoid CNXN?

  1. Sales were flat over the last five years, indicating it’s failed to expand this cycle
  2. Flat earnings per share over the last five years lagged its peers
  3. Poor free cash flow margin of 2.5% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Connection is trading at $66.02 per share, or 18.9x forward P/E. Read our free research report to see why you should think twice about including CNXN in your portfolio.

CoreCivic (CXW)

Market Cap: $2.39 billion

Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.

Why Is CXW Risky?

  1. Demand for its offerings was relatively low as its number of average available beds has underwhelmed
  2. Earnings per share have dipped by 5.6% annually over the past three years, which is concerning because stock prices follow EPS over the long term
  3. 10.2 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

CoreCivic’s stock price of $21.94 implies a valuation ratio of 24.7x forward P/E. Dive into our free research report to see why there are better opportunities than CXW.

One Business Services Stock to Watch:

Coherent (COHR)

Market Cap: $14.5 billion

Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.

Why Are We Positive On COHR?

  1. Annual revenue growth of 22.9% over the past five years was outstanding, reflecting market share gains this cycle
  2. Revenue base of $5.60 billion gives it economies of scale and some distribution advantages
  3. Estimated revenue growth of 10.9% for the next 12 months implies demand will accelerate from its two-year trend

At $93.33 per share, Coherent trades at 22.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

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 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-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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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