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 Small-Cap Stock to Keep an Eye On and 2 We Find Risky

TNC Cover Image

Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.

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:

Tennant (TNC)

Market Cap: $1.49 billion

As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE: TNC) designs, manufactures, and sells cleaning products to various sectors.

Why Should You Dump TNC?

  1. Sales trends were unexciting over the last two years as its 3% annual growth was below the typical industrials company
  2. Earnings per share fell by 2.1% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. Free cash flow margin shrank by 4.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Tennant’s stock price of $80.66 implies a valuation ratio of 13.2x forward P/E. To fully understand why you should be careful with TNC, check out our full research report (it’s free).

National Bank Holdings (NBHC)

Market Cap: $1.51 billion

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

Why Is NBHC Not Exciting?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Net interest margin dropped by 24 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
  3. Projected 4.8 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise

National Bank Holdings is trading at $39.96 per share, or 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than NBHC.

One Small-Cap Stock to Watch:

OSI Systems (OSIS)

Market Cap: $3.96 billion

With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ: OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.

Why Does OSIS Stand Out?

  1. Market share has increased this cycle as its 15.8% annual revenue growth over the last two years was exceptional
  2. Operating margin improvement of 2.6 percentage points over the last five years demonstrates its ability to scale efficiently
  3. Earnings per share have massively outperformed its peers over the last two years, increasing by 22.7% annually

At $235.20 per share, OSI Systems trades at 23.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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

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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