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 Russell 2000 Stock for Long-Term Investors and 2 We Question

BMI Cover Image

Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.

The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we’re here to guide you toward the right ones. Keeping that in mind, here is one Russell 2000 stock that could be the next big thing and two best left off your watchlist.

Two Stocks to Sell:

Sphere Entertainment (SPHR)

Market Cap: $1.74 billion

Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE: SPHR) hosts live entertainment events and distributes content across various media platforms.

Why Are We Out on SPHR?

  1. Muted 7.6% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
  2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $48.38 per share, Sphere Entertainment trades at 10.7x forward EV-to-EBITDA. To fully understand why you should be careful with SPHR, check out our full research report (it’s free).

Integer Holdings (ITGR)

Market Cap: $3.71 billion

With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.

Why Does ITGR Worry Us?

  1. Modest revenue base of $1.79 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. 5.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
  3. Underwhelming 5.6% return on capital reflects management’s difficulties in finding profitable growth opportunities

Integer Holdings’s stock price of $105.84 implies a valuation ratio of 15.7x forward P/E. Dive into our free research report to see why there are better opportunities than ITGR.

One Stock to Buy:

Badger Meter (BMI)

Market Cap: $5.36 billion

The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE: BMI) provides water control and measure equipment to various industries.

Why Will BMI Outperform?

  1. Market share has increased this cycle as its 17.8% annual revenue growth over the last two years was exceptional
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 32.1% over the last two years outstripped its revenue performance
  3. Strong free cash flow margin of 15.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute

Badger Meter is trading at $181.76 per share, or 34.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

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