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Lumentum (LITE) Moves 4.2% Higher: Will This Strength Last?
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Lumentum (LITE - Free Report) shares soared 4.2% in the last trading session to close at $930.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.6% gain over the past four weeks.
The optimism surrounding the stock can be attributed to strong demand for Lumentum’s optical products, driven by rising AI data center deployments, record 800G shipments and the start of 1.6T transceiver shipments. Further, strong pump laser demand and the expected ramp-up in OCS revenue are supporting the company’s growth outlook.
This optical networking products maker is expected to post quarterly earnings of $4.22 per share in its upcoming report, which represents a year-over-year change of +283.6%. Revenues are expected to be $1.25 billion, up 134.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lumentum, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LITE going forward to see if this recent jump can turn into more strength down the road.
Lumentum is a member of the Zacks Communication - Components industry. One other stock in the same industry, Corning (GLW - Free Report) , finished the last trading session 1.6% higher at $150.13. GLW has returned -2.4% over the past month.
Corning's consensus EPS estimate for the upcoming report has changed +0.6% over the past month to $0.88. Compared to the company's year-ago EPS, this represents a change of +31.3%. Corning currently boasts a Zacks Rank of #3 (Hold).
View the Zacks #1 Rank List
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Lumentum (LITE) Moves 4.2% Higher: Will This Strength Last?
Lumentum (LITE - Free Report) shares soared 4.2% in the last trading session to close at $930.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.6% gain over the past four weeks.
The optimism surrounding the stock can be attributed to strong demand for Lumentum’s optical products, driven by rising AI data center deployments, record 800G shipments and the start of 1.6T transceiver shipments. Further, strong pump laser demand and the expected ramp-up in OCS revenue are supporting the company’s growth outlook.
This optical networking products maker is expected to post quarterly earnings of $4.22 per share in its upcoming report, which represents a year-over-year change of +283.6%. Revenues are expected to be $1.25 billion, up 134.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lumentum, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LITE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lumentum is a member of the Zacks Communication - Components industry. One other stock in the same industry, Corning (GLW - Free Report) , finished the last trading session 1.6% higher at $150.13. GLW has returned -2.4% over the past month.
Corning's consensus EPS estimate for the upcoming report has changed +0.6% over the past month to $0.88. Compared to the company's year-ago EPS, this represents a change of +31.3%. Corning currently boasts a Zacks Rank of #3 (Hold).