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.

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

3 Services Stocks We’re Skeptical Of

IBM Cover Image

Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. These firms have helped their customers unlock huge efficiencies, so it’s no surprise the industry has posted a 14.3% gain over the past six months, nearly mirrorring the S&P 500.

Although these companies have produced results, only a handful will thrive over the long term as AI-driven upstarts are rapidly taking share from the incumbents. Keeping that in mind, here are three services stocks we’re steering clear of.

IBM (IBM)

Market Cap: $262.2 billion

With a corporate history spanning over a century and once known for its iconic mainframe computers, IBM (NYSE: IBM) provides hybrid cloud computing platforms, AI solutions, consulting services, and enterprise infrastructure to help businesses modernize their operations.

Why Are We Wary of IBM?

  1. Sales stagnated over the last five years and signal the need for new growth strategies
  2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 3.3% annually
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $281.70 per share, IBM trades at 24.8x forward P/E. To fully understand why you should be careful with IBM, check out our full research report (it’s free).

Barrett (BBSI)

Market Cap: $1.13 billion

Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ: BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.

Why Does BBSI Give Us Pause?

  1. Revenue base of $1.20 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 10.1 percentage points
  3. Waning returns on capital imply its previous profit engines are losing steam

Barrett is trading at $44 per share, or 19x forward P/E. If you’re considering BBSI for your portfolio, see our FREE research report to learn more.

CoreCivic (CXW)

Market Cap: $2.29 billion

Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.

Why Is CXW Not Exciting?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
  2. Demand for its offerings was relatively low as its number of average available beds has underwhelmed
  3. Underwhelming 6.1% return on capital reflects management’s difficulties in finding profitable growth opportunities

CoreCivic’s stock price of $21.30 implies a valuation ratio of 17.3x forward P/E. Dive into our free research report to see why there are better opportunities than CXW.

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