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

1 Small-Cap Stock with Promising Prospects and 2 We Brush Off

VRNS 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 may have trouble.

Two Small-Cap Stocks to Sell:

Varonis Systems (VRNS)

Market Cap: $6.38 billion

Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ: VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.

Why Does VRNS Give Us Pause?

  1. Revenue increased by 11% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
  2. Historical operating margin losses point to an inefficient cost structure
  3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.9 percentage points

Varonis Systems is trading at $56.75 per share, or 9.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than VRNS.

Kirby (KEX)

Market Cap: $4.61 billion

Transporting goods along all U.S. coasts, Kirby (NYSE: KEX) provides inland and coastal marine transportation services.

Why Are We Wary of KEX?

  1. 4.4% annual revenue growth over the last two years was slower than its industrials peers
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7 percentage points
  3. ROIC of 3.2% reflects management’s challenges in identifying attractive investment opportunities

At $83.36 per share, Kirby trades at 11.8x forward P/E. If you’re considering KEX for your portfolio, see our FREE research report to learn more.

One Small-Cap Stock to Watch:

Concentrix (CNXC)

Market Cap: $3.50 billion

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Why Could CNXC Be a Winner?

  1. Impressive 22% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Economies of scale give it some operating leverage when demand rises
  3. Able to self-fund growth initiatives without relying on external capital thanks to its 5.5% free cash flow margin

Concentrix’s stock price of $56.59 implies a valuation ratio of 4.6x forward P/E. 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

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-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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