Lumentum Holdings: Positive Catalysts May Already Be Priced In
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Gytis Zizys3.71K FollowersFollow5ShareSavePlay(11min)CommentsSummaryLumentum Holdings Inc. has surged over 260% as AI/cloud demand drives exceptional sales and margin expansion.LITE's pivot to high-margin AI/cloud optics, with 60% sales exposure, positions it for continued multi-year growth.Management guides for 61% y/y sales growth next quarter, but supply constraints and elevated expectations present risk.I rate LITE a Hold, as the stock is priced to perfection and vulnerable to any earnings disappointment or AI cycle slowdown.
Getty Images Introduction Lumentum Holdings Inc.’s (LITE) share price has been on a tear this past year, and deservedly so, since its sales have grown massively, and profitability improved substantially, leading to a share price appreciation of over 260%. I wanted to takeThis article was written byGytis Zizys3.71K FollowersFollowMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.