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

2 Small-Cap Stocks with Competitive Advantages and 1 Facing Challenges

WK Cover Image

Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.

These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here are two small-cap stocks that could amplify your portfolio’s returns and one that could be down big.

One Small-Cap Stock to Sell:

Vishay Intertechnology (VSH)

Market Cap: $1.87 billion

Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE: VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.

Why Should You Dump VSH?

  1. Annual sales declines of 9.1% for the past two years show its products and services struggled to connect with the market during this cycle
  2. High input costs result in an inferior gross margin of 22.3% that must be offset through higher volumes
  3. Free cash flow margin shrank by 14.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Vishay Intertechnology’s stock price of $13.76 implies a valuation ratio of 75.2x forward P/E. Dive into our free research report to see why there are better opportunities than VSH.

Two Small-Cap Stocks to Watch:

Workiva (WK)

Market Cap: $4.37 billion

Founded in 2010, Workiva (NYSE: WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.

Why Are We Positive On WK?

  1. Billings have averaged 23.2% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
  2. High switching costs and customer loyalty are evident in its net revenue retention rate of 112%
  3. Superior software functionality and low servicing costs are reflected in its top-tier gross margin of 76.8%

Workiva is trading at $79.53 per share, or 4.7x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

American Superconductor (AMSC)

Market Cap: $2.48 billion

Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.

Why Do We Love AMSC?

  1. Impressive 49.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Free cash flow turned positive over the last five years, indicating the company has passed a significant test
  3. Improving returns on capital suggest its past investments are beginning to deliver value

At $54.73 per share, American Superconductor trades at 96.3x 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

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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

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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