Lumentum Holdings Inc (LITE) Stock Analysis
Verdict: HOLD
Booming AI optical interconnect demand drives hyper-growth, but rich TTM P/S of 23.5x and heavy insider selling demand entry discipline.
Investment score: 63/100
Analysis as of
Is Lumentum Holdings Inc stock worth reviewing? AI model thesis
The model rates LITE as a HOLD at 908.19 USD. While operational momentum in optical interconnects for AI data centers is undeniable, rich multi-year expansion is heavily priced into current multiples.
7-factor investment score
- Valuation: 52/100 (weight 20%)
- Financial Health: 72/100 (weight 15%)
- Technical Momentum: 68/100 (weight 15%)
- Earnings Quality: 82/100 (weight 15%)
- Insider Sentiment: 25/100 (weight 10%)
- Analyst Consensus: 82/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Lumentum Holdings Inc opportunities and risks
What speaks for LITE
- Hyper-Scale AI Interconnect Expansion
What speaks against LITE
- Cyclical Sensitivity to AI Hyper-Scaler Capex
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LITE | n/a | 23.5x | n/a | 41.7% | -230.1% | 0.8% |
| CSCO | 33.1x | 6.9x | 23.0x | 64.5% | 21.0% | 3.1% |
| ANET | 63.6x | 24.4x | 49.9x | 63.0% | 38.4% | 2.0% |
| MSI | 36.1x | 6.3x | 22.6x | 50.0% | 17.4% | 3.5% |
| CIEN | 77.0x | 8.4x | 49.6x | 44.1% | 10.9% | 1.4% |
| UI | 37.5x | 11.0x | 30.1x | 46.2% | 29.3% | 2.5% |
| Peer median | 37.5x | 8.4x | 30.1x | 50.0% | 21.0% | 2.5% |
Frequently asked questions about Lumentum Holdings Inc (LITE)
Is LITE stock a good investment?
The cached TradeMates AI model rates Lumentum Holdings Inc as HOLD with an investment score of 63/100. The model rates LITE as a HOLD at 908.19 USD. While operational momentum in optical interconnects for AI data centers is undeniable, rich multi-year expansion is heavily priced into current multiples. This is algorithmic model output, not personal investment advice.
Is LITE stock a buy?
The TradeMates model verdict for LITE is HOLD with an investment score of 63/100. Treat this as a model signal to review, not a personal buy recommendation.