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 Russell 2000 Stocks in Hot Water

HCAT Cover Image

The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.

The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we’re here to guide you toward the right ones. That said, here are three Russell 2000 stocks to avoid and better alternatives to consider.

Health Catalyst (HCAT)

Market Cap: $268.7 million

Founded by healthcare professionals Tom Burton and Steve Barlow in 2008, Health Catalyst (NASDAQ: HCAT) provides data and analytics technology to healthcare organizations, enabling them to improve care and lower costs.

Why Is HCAT Not Exciting?

  1. Muted 7% annual revenue growth over the last three years shows its demand lagged behind its software peers
  2. Sky-high servicing costs result in an inferior gross margin of 45.9% that must be offset through increased usage
  3. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low

Health Catalyst is trading at $3.86 per share, or 0.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than HCAT.

Jack in the Box (JACK)

Market Cap: $400.8 million

Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.

Why Should You Sell JACK?

  1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
  2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 24.2 percentage points
  3. 10× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $21.43 per share, Jack in the Box trades at 4x forward P/E. If you’re considering JACK for your portfolio, see our FREE research report to learn more.

Grid Dynamics (GDYN)

Market Cap: $884.4 million

With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ: GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes.

Why Do We Think Twice About GDYN?

  1. Smaller revenue base of $371.2 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 8.5% annually while its revenue grew
  3. Push for growth has led to negative returns on capital, signaling value destruction

Grid Dynamics’s stock price of $10.46 implies a valuation ratio of 26.5x forward P/E. Read our free research report to see why you should think twice about including GDYN 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. 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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