What happened

Shares of Coherent (COHR) gained 23.9% in June 2019, according to data from S&P Global Market Intelligence. The maker of industrial lasers and related systems didn't have much news of its own to share last month, but the company looks poised to benefit from geopolitical shifts that appear likely to put a fire under its target markets in short order.

A row of industrial fiber lasers making precision cuts in a sheet of steel.

Image source: Getty Images.

So what

Coherent's stock took a 26% haircut in May, but the tide started turning in early June thanks to hints that the U.S.-China trade war might be heading toward a resolution. That would be good news for Coherent, which thrives when manufacturers globally invest more in their tools and infrastructure -- a situation that would likely be one consequence of normalized trade relations.

Now what

Looking ahead, Coherent CEO John Ambroso says he expects Chinese manufacturers to hit a growth spurt soon, led by smartphone and electronics specialists serving the local market. Coherent would really love to be a part of the conversation when thousands of new factories start looking for the sorts of laser tools that are right in the company's wheelhouse. The sooner the trade conflict ends, the better.