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 Consumer Stock to Research Further and 2 We Question

SKX Cover Image

The performance of consumer discretionary businesses is closely linked to economic cycles. Unfortunately, the industry’s recent performance suggests demand may be fading as discretionary stocks have pulled back by 4.1% over the past six months. This performance was discouraging since the S&P 500 returned 5.4%.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. With that said, here is one consumer stock boasting a durable advantage and two we’re passing on.

Two Consumer Discretionary Stocks to Sell:

Skechers (SKX)

Market Cap: $9.45 billion

Synonymous with "dad shoe", Skechers (NYSE: SKX) is a footwear company renowned for its comfortable, stylish, and affordable shoes for all ages.

Why Should You Dump SKX?

  1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
  2. Estimated sales growth of 4.9% for the next 12 months implies demand will slow from its two-year trend
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

Skechers’s stock price of $62.94 implies a valuation ratio of 18x forward P/E. Dive into our free research report to see why there are better opportunities than SKX.

American Outdoor Brands (AOUT)

Market Cap: $116.9 million

Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ: AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

Why Do We Pass on AOUT?

  1. Lackluster 5.8% annual revenue growth over the last five years indicates the company is losing ground to competitors
  2. Earnings per share have contracted by 23.9% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

American Outdoor Brands is trading at $9.34 per share, or 15.7x forward P/E. To fully understand why you should be careful with AOUT, check out our full research report (it’s free).

One Consumer Discretionary Stock to Watch:

Live Nation (LYV)

Market Cap: $36.75 billion

Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.

Why Should LYV Be on Your Watchlist?

  1. Remarkable 24% revenue growth over the last five years demonstrates its ability to capture significant market share
  2. Additional sales over the last five years increased its profitability as the 26% annual growth in its earnings per share outpaced its revenue
  3. Returns on capital are climbing as management makes more lucrative bets

At $159.25 per share, Live Nation trades at 48.2x 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

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-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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