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 Growth Stock with All-Star Potential and 2 We Question

NVMI Cover Image

Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.

The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here is one growth stock with significant upside potential and two climbing an uphill battle.

Two Growth Stocks to Sell:

AeroVironment (AVAV)

One-Year Revenue Growth: +44%

Focused on the future of autonomous military combat, AeroVironment (NASDAQ: AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.

Why Do We Think Twice About AVAV?

  1. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 9.4 percentage points
  2. Free cash flow margin dropped by 25.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
  3. Negative returns on capital show management lost money while trying to expand the business

AeroVironment’s stock price of $288.50 implies a valuation ratio of 73.4x forward P/E. If you’re considering AVAV for your portfolio, see our FREE research report to learn more.

Affirm (AFRM)

One-Year Revenue Growth: +38.8%

Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm (NASDAQ: AFRM) provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans.

Why Are We Hesitant About AFRM?

  1. Negative return on equity shows that some of its growth strategies have backfired
  2. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $90 per share, Affirm trades at 38.2x forward P/E. Check out our free in-depth research report to learn more about why AFRM doesn’t pass our bar.

One Growth Stock to Buy:

Nova (NVMI)

One-Year Revenue Growth: +43.7%

Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Why Is NVMI a Top Pick?

  1. Market share has increased this cycle as its 21.1% annual revenue growth over the last two years was exceptional
  2. Earnings per share have massively outperformed its peers over the last five years, increasing by 34.1% annually
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Nova is trading at $311.70 per share, or 36.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 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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