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

2 Industrials Stocks with Solid Fundamentals and 1 We Ignore

ARIS Cover Image

Whether you see them or not, industrials businesses play a crucial part in our daily activities. Their momentum is also rising as lower interest rates have incentivized higher capital spending. As a result, the industry has posted a 21.8% gain over the past six months, beating the S&P 500 by 5.8 percentage points.

Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. Keeping that in mind, here are two industrials stocks boasting durable advantages and one that may face trouble.

One Industrials Stock to Sell:

Tennant (TNC)

Market Cap: $1.5 billion

As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE: TNC) designs, manufactures, and sells cleaning products to various sectors.

Why Are We Out on TNC?

  1. Sales trends were unexciting over the last two years as its 3% annual growth was below the typical industrials company
  2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.1% annually while its revenue grew
  3. Free cash flow margin dropped by 4.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Tennant’s stock price of $81.20 implies a valuation ratio of 13.3x forward P/E. To fully understand why you should be careful with TNC, check out our full research report (it’s free).

Two Industrials Stocks to Watch:

Aris Water (ARIS)

Market Cap: $778.1 million

Primarily serving the oil and gas industry, Aris Water (NYSE: ARIS) is a provider of water handling and recycling solutions.

Why Is ARIS a Top Pick?

  1. Annual revenue growth of 23.8% over the past five years was outstanding, reflecting market share gains this cycle
  2. Additional sales over the last two years increased its profitability as the 30.4% annual growth in its earnings per share outpaced its revenue
  3. Free cash flow margin jumped by 38.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $23.79 per share, Aris Water trades at 14.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Montrose (MEG)

Market Cap: $1.01 billion

Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.

Why Are We Fans of MEG?

  1. Impressive 18% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 132% over the last two years outstripped its revenue performance
  3. Free cash flow margin expanded by 12.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Montrose is trading at $28.50 per share, or 20.5x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.

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 9 Market-Beating Stocks. 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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