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

1 of Wall Street’s Favorite Stock to Consider Right Now and 2 We Find Risky

STRA Cover Image

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Strategic Education (STRA)

Consensus Price Target: $99.33 (27.5% implied return)

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ: STRA) is a career-focused higher education provider.

Why Do We Pass on STRA?

  1. Demand for its offerings was relatively low as its number of domestic students has underwhelmed
  2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 7.1% annually
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $77.90 per share, Strategic Education trades at 12.8x forward P/E. To fully understand why you should be careful with STRA, check out our full research report (it’s free).

CoreCivic (CXW)

Consensus Price Target: $31.50 (54% implied return)

Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.

Why Are We Wary of CXW?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
  2. Performance surrounding its average available beds has lagged its peers
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

CoreCivic’s stock price of $20.46 implies a valuation ratio of 16.5x forward P/E. Check out our free in-depth research report to learn more about why CXW doesn’t pass our bar.

One Stock to Watch:

Concentrix (CNXC)

Consensus Price Target: $67.67 (38.5% implied return)

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Why Could CNXC Be a Winner?

  1. Market share has increased this cycle as its 22% annual revenue growth over the last two years was exceptional
  2. Economies of scale give it some operating leverage when demand rises
  3. Can finance growth initiatives independently due to its satisfactory free cash flow margin of 5.5% for the past five years

Concentrix is trading at $48.85 per share, or 4.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

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