We recently published 10 Big Names Already Crushing This February. Lumentum Holdings Inc. (NASDAQ:LITE) was one of the top performers on Monday. Lumentum Holdings rallied for a second day on Monday, jumping 8.06 percent to close at $423.42 apiece as investors loaded portfolios ahead of its earnings outcome which came out shortly after market close. Earlier, Lumentum Holdings Inc. (NASDAQ:LITE) announced expectations of $630 million to $670 million in net revenues, as well as $1.30 to $1.50 diluted earni ...

We came across a bullish thesis on Lumentum Holdings Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on LITE. Lumentum Holdings Inc.'s share was trading at $381.44 as of January 29th. LITE’s trailing and forward P/E were 234.01 and 64.94 respectively according to Yahoo Finance. Fermi (FRMI) Nosedives on Profit-Taking on Double-Digit Upside Potential Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, ...

In the current session, the stock is trading at $431.90, after a 10.22% spike. Over the past month, Lumentum Holdings Inc. (NASDAQ:LITE) stock increased by 8.68%, and in the past year, by 400.29%. With performance like this, long-term shareholders are optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.How Does Lumentum Holdings P/E Compare to Other Companies?The P/E ratio measures the current share price to the company's EPS. It is used by ...

Lumentum Holdings Inc. (NASDAQ:LITE) is expected to report an EPS of $1.40 and revenue of approximately $646.7 million for its upcoming quarterly earnings.The company's growth is significantly driven by the increased demand for AI and cloud technologies, with over 60% of its revenue stemming from these sectors.Lumentum's optics business is thriving, thanks to the adoption of AI technologies, positioning the company as a leader in scaling AI infrastructure.Lumentum Holdings Inc. (NASDAQ:LITE) is set to relea ...

Core Insights - Lumentum Holdings Inc. (NASDAQ:LITE) experienced a significant share price increase of 15.52% week-on-week, driven by investor enthusiasm ahead of its earnings report and a price target upgrade from Morgan Stanley [1][3]. Financial Performance - The company is set to announce its financial and operational highlights for Q2 2026 on February 3, 2026, after market close, followed by a conference call to discuss the results [2]. Analyst Ratings and Market Sentiment - Morgan Stanley raised its price target for Lumentum Holdings to $350 from $304, while maintaining an "equal weight" rating on the stock [3]. - The stock has appreciated approximately 100% since the FQ1 results in early November, making it a top choice for incremental investors as the year closed [4]. - Despite the positive sentiment, Morgan Stanley noted that investors are becoming more neutral ahead of the upcoming results due to concerns about the sustainability of high expectations, particularly as the company may remain "capacity constrained" in several categories [5].

Core Viewpoint - Morgan Stanley has raised the price target for Lumentum (LITE) to $350 from $304 while maintaining an Equal Weight rating on the shares [1] Group 1: Financial Performance - The biggest unknowns for fiscal Q2 EPS are primarily related to margins [1] - Demand conditions for Lumentum remain strong [1] - The company is largely capacity constrained [1]

Core Insights - Lumentum (LITE) is expected to report Q2 fiscal 2026 results on February 3, with projected revenues between $630 million and $670 million and non-GAAP earnings per share in the range of $1.30 to $1.50 [1][10] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $652.4 million, reflecting a 62.2% increase from the same quarter last year, while the earnings consensus is $1.41 per share, up by a penny over the past 30 days [2] - Lumentum reported earnings of 42 cents in the year-ago quarter [2] Growth Drivers - Over 60% of Lumentum's current revenues are derived from AI infrastructure and cloud demand, primarily driven by hyperscaler customers [8][10] - Strong demand for laser chips and optical transceivers is expected to continue, with significant contributions from data center interconnect (DCI) components [9][19] - Lumentum anticipates sustainable growth from cloud transceivers over the next four to five quarters, with a notable increase in narrow line width laser assemblies for DCI transmission, which rose 70% year over year [9][21] Market Performance - Lumentum shares have increased by 353.3% over the past year, outperforming the Zacks Communication Components industry's return of 119.7% and the broader Zacks Computer and Technology sector's appreciation of 27.8% [13] - The stock is currently trading at a forward price-to-sales ratio of 8.84X, which is higher than the industry average of 4.42X and peers like Ciena and Coherent [16] Future Prospects - The company expects continued strong demand for its laser chips, with a projected 40% increase in capacity at its indium phosphide-based wafer fab [20] - Lumentum's components are anticipated to remain the primary revenue and earnings growth drivers in the near term, supported by rapid scaling of systems with cloud transceivers and optical circuit switches [21] - The company holds a Zacks Rank 2 (Buy) and a Growth Score of A, indicating a favorable investment opportunity [22]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - TechCreate Group Ltd. (TCGL) is up 99% at $205.71 - VivoSim Labs, Inc. (VIVS) is up 74% at $2.96 - La Rosa Holdings Corp. (LRHC) is up 55% at $4.66 - Sandisk Corporation (SNDK) is up 23% at $668.13 - Springview Holdings Ltd (SPHL) is up 19% at $4.76 - BUUU Group Limited (BUUU) is up 16% at $10.86 - Deckers Outdoor Corporation (DECK) is up 11% at $111.64 - Lumentum Holdings Inc. (LITE) is up 10% at $419.58 - Chanson International Holding (CHSN) is up 10% at $2.15 - Century Therapeutics, Inc. (IPSC) is up 9% at $2.20 [3] Premarket Losers - Kaixin Holdings (KXIN) is down 43% at $5.70 - Brand Engagement Network, Inc. (BNAI) is down 32% at $35.56 - PennyMac Financial Services, Inc. (PFSI) is down 21% at $117.50 - Schneider National, Inc. (SNDR) is down 19% at $24.05 - Moolec Science SA (MLEC) is down 19% at $5.23 - Nuwellis, Inc. (NUWE) is down 18% at $3.43 - Digital Currency X Technology Inc. (DCX) is down 16% at $3.44 - Serina Therapeutics, Inc. (SER) is down 15% at $3.03 - Namib Minerals (NAMM) is down 11% at $5.00 - ZeroStack Corp. (ZSTK) is down 6% at $11.00 [4]

Core Insights - Lumentum's (LITE) growth is significantly driven by strong demand for AI infrastructure, with over 60% of its current revenues coming from this sector, particularly from hyperscalers [1][10] - The company anticipates exceeding its revenue midpoint guidance of approximately $650 million sooner than previously expected [10] Group 1: Revenue and Growth Expectations - Lumentum expects fiscal second-quarter revenues to range between $630 million and $670 million, with earnings projected at $1.30 to $1.50 per share, indicating a 62.2% growth compared to the same quarter last year [4] - The growth in the second quarter of fiscal 2026 is expected to be evenly split between component products for cloud applications and systems products for data centers [3][10] Group 2: Competitive Landscape - Lumentum faces competition from Ciena and Marvell Technology in the AI infrastructure market, with Ciena benefiting from increased customer spending due to the rise of AI applications [5][6] - Marvell Technology is capitalizing on the demand for scale-up switches that connect AI accelerators, which require high bandwidth and low latency [7] Group 3: Stock Performance and Valuation - Lumentum's stock has increased by 386.8% over the past year, outperforming the broader Zacks Computer and Technology sector, which saw a return of 27.1% [8] - The stock is currently trading at a forward 12-month price/sales ratio of 8.6X, significantly higher than the Zacks Communications Components industry's average of 4.47X [11]

Group 1 - Lumentum Holdings Inc. (NASDAQ:LITE) is receiving positive attention from analysts, with multiple firms reiterating Buy ratings and raising price targets significantly, from $240 to $450 by Citi and from $200 to $400 by Stifel Nicolaus [1][2][4] - The bullish outlook is driven by expectations that advancements in agentic AI and reasoning networks will increase networking intensity, leading to more complex traffic patterns in the coming years [2] - Analysts anticipate that the shortening of cycle times for networking standards will benefit Lumentum, as AI networking is expected to scale linearly while compute performance grows quadratically, resulting in profitability gains and expanded valuation multiples for suppliers [3] Group 2 - Aletheia Capital also raised its price target for Lumentum from $330 to $500, citing increasing demand for the company's electro-absorption modulated lasers and expected strong growth in EML volumes and 800Gbps switch bandwidth through 2028 [4]