Lumentum (LITE) Shows Strong Momentum: Is It a Good Investment?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 27 2025
0mins
Source: NASDAQ.COM
Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation of selling them at even higher prices. It relies on the belief that once a stock establishes a trend, it is likely to continue in that direction.
Lumentum's Performance: Lumentum (LITE) has a Momentum Style Score of A and a Zacks Rank of #1 (Strong Buy). The company has shown significant price increases, with shares up 60.49% over the past quarter and 116.81% over the last year, outperforming the S&P 500.
Earnings Estimates and Volume: Recent earnings estimates for LITE have improved, with seven upward revisions in the past two months, raising the consensus estimate from $4.05 to $4.88. Additionally, LITE has an average trading volume of 3,191,630 shares over the last 20 days, indicating strong market interest.
Investment Recommendation: Given its strong performance metrics and positive earnings revisions, Lumentum is recommended as a promising momentum stock for investors looking for potential short-term gains.
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Analyst Views on LITE
Wall Street analysts forecast LITE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LITE is 303.36 USD with a low forecast of 147.00 USD and a high forecast of 470.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 381.440
Low
147.00
Averages
303.36
High
470.00
Current: 381.440
Low
147.00
Averages
303.36
High
470.00
About LITE
Lumentum Holdings Inc. is a designer and manufacturer of optical and photonic products enabling optical networking and laser applications worldwide. Its segments include Cloud & Networking and Industrial Tech. The Cloud & Networking segment products include a comprehensive portfolio of optical and photonic components, modules, and subsystems supplied to cloud and communications network operators and network equipment manufacturers building cloud data center infrastructure, including products for artificial intelligence and machine learning (AI/ML) and data center interconnect (DCI) applications, and communications service provider networks, including products for access (local), metro (intracity), long-haul (city-to-city and worldwide), and submarine (undersea) network infrastructure. The Industrial Tech segment products include solid-state lasers, kilowatt-class fiber lasers, diode lasers, ultrafast lasers, and gas lasers, which address applications in numerous end-markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lumentum Shares Rise 8% Ahead of Q2 Fiscal 2026 Results
- Stock Surge: Lumentum (LITE) shares rose approximately 8% during early trading on Friday, reflecting market optimism ahead of its fiscal Q2 2026 financial results set to be released on February 3, indicating strong investor confidence in the company's future growth.
- Price Target Increase: Morgan Stanley raised its price target for Lumentum from $304 to $350 while maintaining an Equal-weight rating, suggesting an improved outlook on the company's profitability, although analysts remain cautious about short-term expectations.
- Strong Annual Performance: Over the past year, Lumentum's stock has skyrocketed by 390%, primarily driven by significant deals with major hyperscalers like Google and Oracle, showcasing the company's robust growth potential in the networking and industrial tech sectors.
- Earnings Expectations: The upcoming earnings report is expected to show adjusted earnings per share (EPS) of $1.40 and GAAP EPS of $0.49 on revenue of $652.2 million, with increasing market attention on its financial performance reflecting investor anticipation for the company's future results.
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