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 Mid-Cap Stock with Competitive Advantages and 2 to Brush Off

CACI Cover Image

Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one mid-cap stock with a long growth runway and two best left ignored.

Two Mid-Cap Stocks to Sell:

Quest (DGX)

Market Cap: $18.65 billion

Processing approximately one-third of the adult U.S. population's lab tests annually, Quest Diagnostics (NYSE: DGX) provides laboratory testing and diagnostic information services to patients, physicians, hospitals, and other healthcare providers across the United States.

Why Are We Wary of DGX?

  1. Underwhelming requisition volumes over the past two years imply it may need to invest in improvements to get back on track
  2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 10.3 percentage points
  3. Eroding returns on capital suggest its historical profit centers are aging

Quest’s stock price of $170 implies a valuation ratio of 16.9x forward P/E. Dive into our free research report to see why there are better opportunities than DGX.

Markel Group (MKL)

Market Cap: $25.32 billion

Often referred to as a "mini Berkshire Hathaway" for its three-engine business model of insurance, investments, and wholly-owned businesses, Markel Group (NYSE: MKL) is a specialty insurance company that underwrites complex risks, manages investment portfolios, and owns a diverse collection of operating businesses.

Why Are We Cautious About MKL?

  1. Large revenue base makes it harder to expand quickly, and its annual net premiums earned growth of 3.8% over the last two years was below our standards for the insurance sector
  2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue
  3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 14.7% annually

Markel Group is trading at $1,996 per share, or 1.4x forward P/B. If you’re considering MKL for your portfolio, see our FREE research report to learn more.

One Mid-Cap Stock to Watch:

CACI (CACI)

Market Cap: $10.42 billion

Founded to commercialize SIMSCRIPT, CACI International (NYSE: CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.

Why Are We Fans of CACI?

  1. Demand is greater than supply as the company’s 13% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
  2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.9% exceeded its revenue gains over the last two years

At $473.65 per share, CACI trades at 17.8x 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

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 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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