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

3 Consumer Stocks That Fall Short

TDUP Cover Image

The performance of consumer discretionary businesses is closely linked to economic cycles. Thankfully for the industry, all signs are pointing up as discretionary stocks have gained 25.9% over the past six months, beating the S&P 500’s 17.5% return.

Nevertheless, this stability can be deceiving as many companies in this space lack recurring revenue characteristics and ride short-term fads. With that said, here are three consumer stocks best left ignored.

ThredUp (TDUP)

Market Cap: $1.29 billion

Founded to revolutionize thrifting, ThredUp (NASDAQ: TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.

Why Should You Dump TDUP?

  1. Demand for its offerings was relatively low as its number of orders has underwhelmed
  2. Historical operating margin losses point to an inefficient cost structure
  3. Cash burn makes us question whether it can achieve sustainable long-term growth

At $10.57 per share, ThredUp trades at 99.8x forward EV-to-EBITDA. To fully understand why you should be careful with TDUP, check out our full research report (it’s free).

Nike (NKE)

Market Cap: $106.8 billion

Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE: NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.

Why Are We Out on NKE?

  1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
  2. Projected sales for the next 12 months are flat and suggest demand will be subdued
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

Nike is trading at $72.56 per share, or 42.2x forward P/E. Read our free research report to see why you should think twice about including NKE in your portfolio.

Soho House (SHCO)

Market Cap: $1.73 billion

Boasting fancy locations in hubs such as NYC and Miami, Soho House (NYSE: SHCO) is a global hospitality brand offering exclusive private member clubs, hotels, and restaurants.

Why Are We Hesitant About SHCO?

  1. Number of members has disappointed over the past two years, indicating weak demand for its offerings
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Soho House’s stock price of $8.86 implies a valuation ratio of 9.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SHCO.

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-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

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