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 Russell 2000 Stock to Target This Week and 2 That Underwhelm

PLAB 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.

Picking the right small caps isn’t easy, and that’s exactly why StockStory exists - to help you focus on the best opportunities. That said, here is one Russell 2000 stock that could be the next big thing and two best left off your watchlist.

Two Stocks to Sell:

Gray Television (GTN)

Market Cap: $602.1 million

Specializing in local media coverage, Gray Television (NYSE: GTN) is a broadcast company supplying digital media to various markets in the United States.

Why Do We Steer Clear of GTN?

  1. Sales stagnated over the last two years and signal the need for new growth strategies
  2. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 5.3 percentage points over the next year
  3. 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Gray Television’s stock price of $5.90 implies a valuation ratio of 0.7x forward EV-to-EBITDA. To fully understand why you should be careful with GTN, check out our full research report (it’s free).

Stellar Bancorp (STEL)

Market Cap: $1.54 billion

Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE: STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.

Why Should You Sell STEL?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Projected 5.7 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
  3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 3.7% annually over the last five years

At $29.99 per share, Stellar Bancorp trades at 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than STEL.

One Stock to Watch:

Photronics (PLAB)

Market Cap: $1.31 billion

Sporting a global footprint of facilities, Photronics (NASDAQ: PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.

Why Does PLAB Stand Out?

  1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  2. Share buybacks propelled its annual earnings per share growth to 31.7%, which outperformed its revenue gains over the last five years
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities

Photronics is trading at $21.72 per share, or 10.5x forward P/E. Is now the right 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 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 Comfort Systems (+782% 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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