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

1 Small-Cap Stock on Our Watchlist and 2 We Turn Down

RPD 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.

The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here is one small-cap stock that could be the next big thing and two that could be down big.

Two Small-Cap Stocks to Sell:

Rapid7 (RPD)

Market Cap: $1.26 billion

With its name inspired by the need for quick responses to cyber threats, Rapid7 (NASDAQ: RPD) provides cybersecurity software and services that help organizations detect vulnerabilities, monitor threats, and respond to security incidents.

Why Is RPD Risky?

  1. Underwhelming ARR growth of 4.2% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
  2. Estimated sales growth of 1.8% for the next 12 months implies demand will slow from its two-year trend
  3. Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient

Rapid7’s stock price of $19.76 implies a valuation ratio of 1.4x forward price-to-sales. Check out our free in-depth research report to learn more about why RPD doesn’t pass our bar.

Comerica (CMA)

Market Cap: $8.92 billion

Founded in 1849 during the California Gold Rush era, Comerica (NYSE: CMA) is a financial services company that provides commercial banking, retail banking, and wealth management services to businesses and individuals.

Why Do We Think Twice About CMA?

  1. Annual net interest income growth of 3.2% over the last five years was below our standards for the banking sector
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 26.9% annually, worse than its revenue
  3. Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years

Comerica is trading at $69.42 per share, or 1.3x forward P/B. If you’re considering CMA for your portfolio, see our FREE research report to learn more.

One Small-Cap Stock to Watch:

PennyMac Financial Services (PFSI)

Market Cap: $6.41 billion

Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.

Why Do We Like PFSI?

  1. Impressive 39.9% annual net interest income growth over the last five years indicates it’s winning market share this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 66.2% over the last two years outstripped its revenue performance
  3. Balance sheet strength has increased this cycle as its 18.8% annual tangible book value per share growth over the last five years was exceptional

At $124.04 per share, PennyMac Financial Services trades at 1.5x forward P/B. Is now the right time to buy? 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 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-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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