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

3 Overrated Stocks That Concern Us

MOV Cover Image

The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here are three stocks that are likely overheated and some you should look into instead.

Movado (MOV)

One-Month Return: +19.5%

With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.

Why Do We Avoid MOV?

  1. Sales tumbled by 4.3% annually over the last two years, showing consumer trends are working against its favor
  2. Projected sales growth of 1.5% for the next 12 months suggests sluggish demand
  3. Waning returns on capital imply its previous profit engines are losing steam

At $18.48 per share, Movado trades at 0.6x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why MOV doesn’t pass our bar.

Hillman (HLMN)

One-Month Return: +20.4%

Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ: HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.

Why Are We Cautious About HLMN?

  1. Sales trends were unexciting over the last two years as its 1.6% annual growth was below the typical industrials company
  2. Operating margin of 3.9% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
  3. ROIC of 3% reflects management’s challenges in identifying attractive investment opportunities

Hillman is trading at $9.79 per share, or 17.8x forward P/E. If you’re considering HLMN for your portfolio, see our FREE research report to learn more.

Park-Ohio (PKOH)

One-Month Return: +22.4%

Based in Cleveland, Park-Ohio (NASDAQ: PKOH) provides supply chain management services, capital equipment, and manufactured components.

Why Does PKOH Give Us Pause?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. High input costs result in an inferior gross margin of 15.4% that must be offset through higher volumes
  3. Cash burn makes us question whether it can achieve sustainable long-term growth

Park-Ohio’s stock price of $19.98 implies a valuation ratio of 5.9x forward P/E. To fully understand why you should be careful with PKOH, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

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