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 Industrials Stocks Walking a Fine Line

GM Cover Image

Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But their prominence also brings high exposure to the ups and downs of economic cycles. Luckily, their overall demand was steady over the past six months as the industry’s 4.5% return has closely followed the S&P 500.

Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. Taking that into account, here are three industrials stocks we’re steering clear of.

General Motors (GM)

Market Cap: $50.96 billion

Founded in 1908 by William C. Durant, General Motors (NYSE: GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.

Why Does GM Give Us Pause?

  1. Weak unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
  2. 7.9 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
  3. High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate

General Motors is trading at $53.53 per share, or 5.8x forward P/E. Dive into our free research report to see why there are better opportunities than GM.

Lockheed Martin (LMT)

Market Cap: $99.37 billion

Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE: LMT) specializes in defense, space, homeland security, and information technology products.

Why Do We Avoid LMT?

  1. Average backlog growth of 7.3% over the past two years was mediocre and suggests fewer customers signed long-term contracts
  2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 4.9% annually
  3. Eroding returns on capital suggest its historical profit centers are aging

Lockheed Martin’s stock price of $425.88 implies a valuation ratio of 15.1x forward P/E. Check out our free in-depth research report to learn more about why LMT doesn’t pass our bar.

XPO (XPO)

Market Cap: $14.16 billion

Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE: XPO) is a transportation company specializing in expedited shipping services.

Why Are We Out on XPO?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.5% annually over the last five years
  2. Flat earnings per share over the last two years lagged its peers
  3. Free cash flow margin dropped by 7.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $120.22 per share, XPO trades at 29.6x forward P/E. To fully understand why you should be careful with XPO, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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

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