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 Cash-Producing Stock to Consider Right Now and 2 We Ignore

GWRE Cover Image

Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.

Luckily for you, we built StockStory to help you separate the good from the bad. That said, here is one cash-producing company that leverages its financial strength to beat its competitors and two that may struggle to keep up.

Two Stocks to Sell:

MSC Industrial (MSM)

Trailing 12-Month Free Cash Flow Margin: 7%

Founded in NYC’s Little Italy, MSC Industrial Direct (NYSE: MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors

Why Are We Out on MSM?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Anticipated sales growth of 3.6% for the next year implies demand will be shaky
  3. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 5.6% annually

MSC Industrial is trading at $92.83 per share, or 24.5x forward P/E. Read our free research report to see why you should think twice about including MSM in your portfolio.

Hexcel (HXL)

Trailing 12-Month Free Cash Flow Margin: 9.1%

Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE: HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.

Why Do We Steer Clear of HXL?

  1. Annual sales declines of 1.8% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
  3. 8.2 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

At $62.50 per share, Hexcel trades at 28x forward P/E. Dive into our free research report to see why there are better opportunities than HXL.

One Stock to Watch:

Guidewire Software (GWRE)

Trailing 12-Month Free Cash Flow Margin: 23.3%

With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.

Why Are We Positive On GWRE?

  1. Billings growth has averaged 21.2% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
  2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
  3. Robust free cash flow margin of 23.3% gives it many options for capital deployment

Guidewire Software’s stock price of $245.55 implies a valuation ratio of 15.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 5 Growth Stocks for this month. 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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