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 Cash-Burning Stocks Walking a Fine Line

LGIH Cover Image

Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding. Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.

Not all companies are worth the risk, and that’s why we built StockStory - to help you spot the red flags. Keeping that in mind, here are three cash-burning companies to steer clear of and a few better alternatives.

LGI Homes (LGIH)

Trailing 12-Month Free Cash Flow Margin: -7.8%

Based in Texas, LGI Homes (NASDAQ: LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.

Why Do We Steer Clear of LGIH?

  1. Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 10.4% declines over the past two years
  2. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

LGI Homes’s stock price of $67.34 implies a valuation ratio of 10.2x forward P/E. If you’re considering LGIH for your portfolio, see our FREE research report to learn more.

Guardant Health (GH)

Trailing 12-Month Free Cash Flow Margin: -32.8%

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ: GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Why Does GH Fall Short?

  1. Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 19.6% annually
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Guardant Health is trading at $58.20 per share, or 7.2x forward price-to-sales. Check out our free in-depth research report to learn more about why GH doesn’t pass our bar.

Maximus (MMS)

Trailing 12-Month Free Cash Flow Margin: -2.6%

With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.

Why Do We Think Twice About MMS?

  1. Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its two-year trend
  2. Free cash flow margin dropped by 11.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

At $84.98 per share, Maximus trades at 13x forward P/E. Dive into our free research report to see why there are better opportunities than MMS.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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-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

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