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 Consumer Stocks We Keep Off Our Radar

PSKY 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 19.9% over the past six months, beating the S&P 500’s 15.6% return.

Regardless of these results, investors should tread carefully as many companies in this space are unpredictable because they lack recurring revenue business models. Taking that into account, here are three consumer stocks we’re swiping left on.

Paramount (PSKY)

Market Cap: $20.74 billion

Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ: PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.

Why Do We Steer Clear of PSKY?

  1. Sales tumbled by 2% annually over the last two years, showing consumer trends are working against its favor
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 23.5% annually while its revenue grew
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Paramount is trading at $19.04 per share, or 14x forward P/E. To fully understand why you should be careful with PSKY, check out our full research report (it’s free).

Ruger (RGR)

Market Cap: $642.1 million

Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.

Why Do We Avoid RGR?

  1. Annual sales declines of 3.9% for the past two years show its products and services struggled to connect with the market
  2. Earnings per share fell by 14.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $40.10 per share, Ruger trades at 22.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why RGR doesn’t pass our bar.

Latham (SWIM)

Market Cap: $895 million

Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Why Is SWIM Not Exciting?

  1. Products and services have few die-hard fans as sales have declined by 7.7% annually over the last two years
  2. Projected 1.7 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

Latham’s stock price of $7.68 implies a valuation ratio of 54.8x forward P/E. If you’re considering SWIM for your portfolio, see our FREE research report to learn more.

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