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Bull Of The Day: nLight (LASR)

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nLight (LASR - Free Report) is a Zacks Rank #2 (Buy) that has an F for Value and an A for Growth. The company not only has a very memorable ticker symbol, it aso provider high power semiconductor and fiber laser.  The company recently posted a strong quarter and this could lead to a major breakout.  Let’s learn more about why this stock is the Bull of the Day.

Description                                              

nLIGHT, Inc. engages in the provision of semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications. It operates through the Laser Products and Advanced Development segments. The Laser Products segment designs, manufactures, and sells a range of semiconductor lasers and fiber lasers that are typically integrated into laser systems or manufacturing tools built by customers. The Advanced Development segment focuses on research, design, and prototyping of next-generation laser technologies, leveraging expertise in laser technology, development, beam control, and advanced optics. The company was founded by Scott H. Keeney, Mark DeVito, and Jason Farmer in June 2000 and is headquartered in Camas, WA.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

NLight (LASR - Free Report) has posted two consecutive beats of the Zacks Consensus Estimate as well as one miss and one meet.  The takeaway from the earnings history is that the company has an average positive earnings surprise of 50% over the last year.

The most recent earnings print saw the company post $0.06 when the consensus was at -$0.09.  That 15 cent beat translates into a positive earnings surprise of 166%.

Earnings Estimates Revisions

Earnings estimate revisions is what the Zacks Rank is all about. 

Estimates are moving higher for NLight (LASR - Free Report) .

The full year 2025 has increased from a loss of $0.28 to a loss of $0.16 over the last 60 days.

2026 has increased from a loss of $0.21 to a loss of $0.10 over the same time period.

Growth

There is good growth projected for NLight (LASR - Free Report) .  This fiscal year analysts are expecting $234M in revenue which would be good for 18% topline growth.

Next fiscal year, the consensus is calling for $245M and that would be good for 4.6%.

Valuation

There is no forward PE for NLight (LASR - Free Report) is still losing money despite the surprise profitability the company posted in the most recent quarter.  The price to book is low at 6.3x and that certainly has room to grow based on its peer group average.  Price to sales comes in at 6.3x.

Margins have increased from -28.1% to -24.4%  and most recently at -14.7% and investors are patiently awaiting those numbers to become positive.  The problem is, when the operating margins do turn positive this stock is likely to be much in price.


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