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.

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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 Industrials Stocks Walking a Fine Line

ATKR Cover Image

Even if they go mostly unnoticed, industrial businesses are the backbone of our country. They are also bound to benefit from a friendlier regulatory environment with the Trump administration, and this excitement has led to a six-month gain of 24% for the sector - higher than the S&P 500’s 15.5% return.

Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. Taking that into account, here are three industrials stocks we’re passing on.

Atkore (ATKR)

Market Cap: $1.99 billion

Protecting the things that power our world, Atkore (NYSE: ATKR) designs and manufactures electrical safety products.

Why Do We Avoid ATKR?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Free cash flow margin dropped by 5.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Atkore is trading at $59.27 per share, or 9.6x forward P/E. Read our free research report to see why you should think twice about including ATKR in your portfolio.

3D Systems (DDD)

Market Cap: $271.9 million

Founded by the inventor of stereolithography, 3D Systems (NYSE: DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.

Why Should You Dump DDD?

  1. Annual sales declines of 6.3% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $2.12 per share, 3D Systems trades at 1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than DDD.

First Solar (FSLR)

Market Cap: $22 billion

Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.

Why Do We Think Twice About FSLR?

  1. Sales trends were unexciting over the last five years as its 6.8% annual growth was below the typical industrials company
  2. Free cash flow margin shrank by 18.9 percentage points over the last five years, suggesting the company stepped up its investments to maintain its competitive edge
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

First Solar’s stock price of $205.23 implies a valuation ratio of 10.4x forward P/E. To fully understand why you should be careful with FSLR, check out our full research report (it’s free).

Stocks We Like More

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-small-cap company Exlservice (+354% 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

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