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 Small-Cap Stock to Research Further and 2 We Turn Down

FIVE Cover Image

Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.

These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one small-cap stock that could be the next big thing and two best left ignored.

Two Small-Cap Stocks to Sell:

Five Below (FIVE)

Market Cap: $7.35 billion

Often facilitating a treasure hunt shopping experience, Five Below (NASDAQ: FIVE) is an American discount retailer that sells a variety of products from mobile phone cases to candy to sports equipment for largely $5 or less.

Why Does FIVE Worry Us?

  1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
  2. Revenue base of $4.04 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

Five Below is trading at $133.52 per share, or 28.6x forward P/E. Check out our free in-depth research report to learn more about why FIVE doesn’t pass our bar.

Azenta (AZTA)

Market Cap: $1.33 billion

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ: AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Why Are We Out on AZTA?

  1. Annual sales declines of 7.2% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 18.7% annually, worse than its revenue
  3. Free cash flow margin shrank by 22.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Azenta’s stock price of $28.80 implies a valuation ratio of 38.4x forward P/E. Dive into our free research report to see why there are better opportunities than AZTA.

One Small-Cap Stock to Watch:

Arlo Technologies (ARLO)

Market Cap: $1.74 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 Like ARLO?

  1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  2. Additional sales over the last two years increased its profitability as the 434% annual growth in its earnings per share outpaced its revenue
  3. Free cash flow margin expanded by 17.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $17.23 per share, Arlo Technologies trades at 24.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum 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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