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 Cash-Producing Stocks We Think Twice About

ETSY Cover Image

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are three cash-producing companies to avoid and some better opportunities instead.

Etsy (ETSY)

Trailing 12-Month Free Cash Flow Margin: 22.4%

Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ: ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.

Why Does ETSY Worry Us?

  1. Likely needs to improve its platform or increase its marketing budget for penetration to accelerate as its active buyers were flat over the last two years
  2. Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
  3. Earnings per share were flat over the last three years while its revenue grew, showing its incremental sales were less profitable

Etsy is trading at $59.40 per share, or 9.8x forward EV/EBITDA. Check out our free in-depth research report to learn more about why ETSY doesn’t pass our bar.

Chegg (CHGG)

Trailing 12-Month Free Cash Flow Margin: 6.4%

Started as a physical textbook rental service, Chegg (NYSE: CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.

Why Should You Dump CHGG?

  1. Intense competition is diverting traffic from its platform as its services subscribers fell by 17.3% annually
  2. EBITDA margin declined by 12.8 percentage points over the last few years as its sales cratered
  3. Sales were less profitable over the last three years as its earnings per share fell by 38.2% annually, worse than its revenue declines

At $1.50 per share, Chegg trades at 2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than CHGG.

CSX (CSX)

Trailing 12-Month Free Cash Flow Margin: 14.7%

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.

Why Is CSX Risky?

  1. Flat unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 8.4% annually, worse than its revenue
  3. 21.5 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

CSX’s stock price of $32.41 implies a valuation ratio of 18.1x forward P/E. If you’re considering CSX for your portfolio, see our FREE research report to learn more.

Stocks We Like More

When Trump unveiled his aggressive tariff plan in April 2025, 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 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-micro-cap company Kadant (+351% 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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