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 Unpopular Stocks with Questionable Fundamentals

IPGP Cover Image

When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

IPG Photonics (IPGP)

Consensus Price Target: $80.20 (1.7% implied return)

Both a designer and manufacturer of its products, IPG Photonics (NASDAQ: IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.

Why Are We Out on IPGP?

  1. Sales tumbled by 4.3% annually over the last five years, showing market trends are working against its favor during this cycle
  2. Inability to adjust its cost structure while its revenue declined over the last five years led to a 46.1 percentage point drop in the company’s operating margin
  3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

IPG Photonics is trading at $78.87 per share, or 64.9x forward P/E. To fully understand why you should be careful with IPGP, check out our full research report (it’s free).

Graco (GGG)

Consensus Price Target: $92.44 (9.4% implied return)

Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.

Why Are We Wary of GGG?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Earnings per share have contracted by 1.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $84.49 per share, Graco trades at 27.5x forward P/E. Check out our free in-depth research report to learn more about why GGG doesn’t pass our bar.

MGIC Investment (MTG)

Consensus Price Target: $27.33 (-3.9% implied return)

Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE: MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.

Why Is MTG Not Exciting?

  1. Net premiums earned contracted by 1.3% annually over the last five years, showing unfavorable market dynamics this cycle
  2. Day-to-day expenses have swelled relative to revenue over the last two years as its combined ratio increased by 10.7 percentage points
  3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 6.1% annually

MGIC Investment’s stock price of $28.44 implies a valuation ratio of 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than MTG.

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 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% 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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