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.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

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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 We’re Skeptical Of

PENG Cover Image

Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.

Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here are three Russell 2000 stocks to steer clear of and some alternatives to watch instead.

Penguin Solutions (PENG)

Market Cap: $1.22 billion

Based in the US, Penguin Solutions (NASDAQ: PENG) is a diversified semiconductor company offering memory, digital, and LED products.

Why Should You Sell PENG?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5% annually over the last two years
  2. Subpar operating margin of 2.5% constrains its ability to invest in process improvements or effectively respond to new competitive threats
  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

Penguin Solutions is trading at $23 per share, or 13.7x forward P/E. If you’re considering PENG for your portfolio, see our FREE research report to learn more.

LSI (LYTS)

Market Cap: $531.6 million

Enhancing commercial environments, LSI (NASDAQ: LYTS) provides lighting and display solutions for businesses and retailers.

Why Do We Think Twice About LYTS?

  1. 4.5% annual revenue growth over the last two years was slower than its industrials peers
  2. Performance over the past two years was negatively impacted by new share issuances as its earnings per share grew slower than its revenue
  3. Free cash flow margin dropped by 5.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up

LSI’s stock price of $18.35 implies a valuation ratio of 15.3x forward P/E. Dive into our free research report to see why there are better opportunities than LYTS.

PennyMac Mortgage Investment Trust (PMT)

Market Cap: $1.04 billion

Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.

Why Does PMT Worry Us?

  1. Net interest income trends were unexciting over the last five years as its 3.5% annual growth was below the typical bank company
  2. Projected net interest income decline of 145% for the next 12 months points to a tough demand environment ahead
  3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 4.8% annually over the last five years

At $12.01 per share, PennyMac Mortgage Investment Trust trades at 0.8x forward P/B. To fully understand why you should be careful with PMT, 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

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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