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Why Lumentum (LITE) Stock Might be a Great Pick

Lumentum (LITE) has seen solid earnings estimate revision activity over the past two months, and belongs to a strong industry as well.

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This story originally appeared on Zacks

One stock that might be an intriguing choice for investors right now is Lumentum Holdings Inc. LITE. This is because this security in the Lasers Systems and Components space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.

- Zacks

This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Lasers Systems and Components space as it currently has a Zacks Industry Rank of 35 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.

Meanwhile, Lumentum is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past two months, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.

In fact, over the past two months, current quarter estimates have risen from $1.48 per share to $1.55 per share, while current year estimates have risen from $5.63 per share to $5.82 per share.  This has helped LITE to earn a Zacks Rank #3 (Hold), further underscoring the company’s solid position.  You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

So, if you are looking for a decent pick in a strong industry, consider Lumentum. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.

 



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