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 Small-Cap Stock on Our Buy List and 2 We Turn Down

TENB 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 is one small-cap stock that could amplify your portfolio’s returns and two that could be down big.

Two Small-Cap Stocks to Sell:

Tenable (TENB)

Market Cap: $3.74 billion

Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ: TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.

Why Are We Cautious About TENB?

  1. Annual revenue growth of 15.8% over the last three years was below our standards for the software sector
  2. Estimated sales growth of 7.4% for the next 12 months implies demand will slow from its three-year trend
  3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.5 percentage points

Tenable is trading at $31.11 per share, or 3.7x forward price-to-sales. Check out our free in-depth research report to learn more about why TENB doesn’t pass our bar.

TTM Technologies (TTMI)

Market Cap: $4.60 billion

As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.

Why Does TTMI Fall Short?

  1. Annual revenue growth of 4.4% over the last five years was below our standards for the business services sector
  2. Free cash flow margin dropped by 6.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
  3. ROIC of 5% reflects management’s challenges in identifying attractive investment opportunities

At $45.99 per share, TTM Technologies trades at 19.9x forward P/E. To fully understand why you should be careful with TTMI, check out our full research report (it’s free).

One Small-Cap Stock to Buy:

Sterling (STRL)

Market Cap: $8.47 billion

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.

Why Are We Bullish on STRL?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 9.9% annual sales growth over the last five years
  2. Free cash flow margin expanded by 12.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
  3. Improving returns on capital reflect management’s ability to monetize investments

Sterling’s stock price of $277.85 implies a valuation ratio of 31.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 6 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 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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