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 with Exciting Potential and 2 to Ignore

ARLO Cover Image

Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 2.1%. This drop was disappointing since the S&P 500 climbed 5.4%.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one services stock poised to generate sustainable market-beating returns and two that may face trouble.

Two Business ServicesStocks to Sell:

Iridium (IRDM)

Market Cap: $3.43 billion

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ: IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Why Are We Hesitant About IRDM?

  1. Smaller revenue base of $841.7 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  2. Free cash flow margin shrank by 3.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Underwhelming 4.4% return on capital reflects management’s difficulties in finding profitable growth opportunities

Iridium is trading at $31.48 per share, or 21.6x forward P/E. To fully understand why you should be careful with IRDM, check out our full research report (it’s free).

Crane NXT (CXT)

Market Cap: $3.30 billion

Born from a corporate transformation completed in 2023, Crane NXT (NYSE: CXT) provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.

Why Does CXT Give Us Pause?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Subscale operations are evident in its revenue base of $1.50 billion, meaning it has fewer distribution channels than its larger rivals
  3. Earnings per share have dipped by 2.2% annually over the past one years, which is concerning because stock prices follow EPS over the long term

At $57.48 per share, Crane NXT trades at 13.1x forward P/E. Dive into our free research report to see why there are better opportunities than CXT.

One Business Services Stock to Watch:

Arlo Technologies (ARLO)

Market Cap: $1.68 billion

Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE: ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.

Why Do We Watch ARLO?

  1. Operating margin profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 193% annually, topping its revenue gains
  3. Free cash flow margin increased by 19.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Arlo Technologies’s stock price of $16 implies a valuation ratio of 25.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even 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 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-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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