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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Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

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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 Unpopular Stock That Deserves Some Love and 2 Facing Headwinds

PENG Cover Image

Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the skepticism is well-placed.

Two Stocks to Sell:

Penguin Solutions (PENG)

Consensus Price Target: $27.13 (2% implied return)

Based in the US, Penguin Solutions (NASDAQ: PENG) is a diversified semiconductor company offering memory, digital, and LED products.

Why Should You Dump PENG?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 5% annually over the last two years
  2. Gross margin of 29.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
  3. Underwhelming 5% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $26.60 per share, Penguin Solutions trades at 15.6x forward P/E. If you’re considering PENG for your portfolio, see our FREE research report to learn more.

Cadre (CDRE)

Consensus Price Target: $38.33 (7.3% implied return)

Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.

Why Does CDRE Give Us Pause?

  1. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 1.7 percentage points
  2. Earnings per share were flat over the last four years and fell short of the peer group average
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7 percentage points

Cadre is trading at $35.72 per share, or 24x forward P/E. Read our free research report to see why you should think twice about including CDRE in your portfolio.

One Stock to Buy:

Houlihan Lokey (HLI)

Consensus Price Target: $207.80 (1.2% implied return)

Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE: HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.

Why Are We Backing HLI?

  1. Annual revenue growth of 17.2% over the last five years was superb and indicates its market share increased during this cycle
  2. Additional sales over the last two years increased its profitability as the 29% annual growth in its earnings per share outpaced its revenue
  3. Annual tangible book value per share growth of 43.7% over the last two years was superb and indicates its capital strength increased during this cycle

Houlihan Lokey’s stock price of $205.27 implies a valuation ratio of 26.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 Exlservice (+354% 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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