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.

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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 Consumer Stocks with Open Questions

DBI Cover Image

Retailers are evolving to meet the expectations of modern, tech-savvy shoppers. But many seem to be moving too slowly as their demand is lagging, causing the industry to underperform the market - over the past six months, retail stocks have shed 6.4%. This drop is a far cry from the S&P 500’s 4.5% ascent.

Investors should tread carefully as many companies in this space can be value traps. On that note, here are three consumer stocks we’re passing on.

Designer Brands (DBI)

Market Cap: $134.8 million

Founded in 1969 as a shoe importer and distributor, Designer Brands (NYSE: DBI) is an American discount retailer focused on footwear and accessories.

Why Do We Steer Clear of DBI?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
  2. Low returns on capital reflect management’s struggle to allocate funds effectively
  3. High net-debt-to-EBITDA ratio of 11× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Designer Brands is trading at $2.76 per share, or 11.1x forward P/E. Read our free research report to see why you should think twice about including DBI in your portfolio.

Monro (MNRO)

Market Cap: $432.3 million

Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Why Do We Pass on MNRO?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
  2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 6 percentage points
  3. Underwhelming 5% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $14.60 per share, Monro trades at 20.4x forward P/E. Dive into our free research report to see why there are better opportunities than MNRO.

OneWater (ONEW)

Market Cap: $259.8 million

A public company since early 2020, OneWater Marine (NASDAQ: ONEW) sells boats, yachts, and other marine products.

Why Are We Cautious About ONEW?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
  2. Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 24.2%
  3. 8× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

OneWater’s stock price of $15.87 implies a valuation ratio of 11.2x forward P/E. If you’re considering ONEW for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

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