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 Reason to Sell CSWC and 1 Stock to Buy Instead

CSWC Cover Image

Since March 2025, Capital Southwest has been in a holding pattern, posting a small return of 3.1% while floating around $22.94. The stock also fell short of the S&P 500’s 17.7% gain during that period.

Is now the time to buy Capital Southwest, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Is Capital Southwest Not Exciting?

We're sitting this one out for now. Here is one reason there are better opportunities than CSWC and a stock we'd rather own.

EPS Barely Growing

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Capital Southwest’s EPS grew at an unimpressive 9.7% compounded annual growth rate over the last five years, lower than its 27.8% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.

Capital Southwest Trailing 12-Month EPS (Non-GAAP)

Final Judgment

Capital Southwest isn’t a terrible business, but it isn’t one of our picks. With its shares lagging the market recently, the stock trades at 9.8× forward P/E (or $22.94 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better stocks to buy right now. Let us point you toward one of our all-time favorite software stocks.

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.

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