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.

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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 Cash-Producing Stock for Long-Term Investors and 2 We Turn Down

ZG Cover Image

While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.

Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. That said, here is one cash-producing company that excels at turning cash into shareholder value and two that may face some trouble.

Two Stocks to Sell:

Zillow (ZG)

Trailing 12-Month Free Cash Flow Margin: 14.4%

Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace.

Why Should You Dump ZG?

  1. Annual revenue declines of 7.8% over the last five years indicate problems with its market positioning
  2. Suboptimal cost structure is highlighted by its history of operating margin losses
  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $76.98 per share, Zillow trades at 40.9x forward P/E. If you’re considering ZG for your portfolio, see our FREE research report to learn more.

Graco (GGG)

Trailing 12-Month Free Cash Flow Margin: 28.1%

Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.

Why Are We Wary of GGG?

  1. Sales stagnated over the last two years and signal the need for new growth strategies
  2. Earnings per share have dipped by 1.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
  3. Waning returns on capital imply its previous profit engines are losing steam

Graco’s stock price of $85.35 implies a valuation ratio of 27.7x forward P/E. Check out our free in-depth research report to learn more about why GGG doesn’t pass our bar.

One Stock to Watch:

The Ensign Group (ENSG)

Trailing 12-Month Free Cash Flow Margin: 6%

Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ: ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.

Why Does ENSG Stand Out?

  1. Average unit sales growth of 12.2% over the past two years reflects steady demand for its products
  2. Forecasted revenue growth of 14.8% for the next 12 months indicates its momentum over the last two years is sustainable
  3. Earnings per share grew by 17.3% annually over the last five years and trumped its peers

The Ensign Group is trading at $163.54 per share, or 24.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 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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