(LITE) Lumentum Holdings - Ratings and Ratios

Lumentum Holdings Inc. is a leading manufacturer of optical and photonic products, catering to a diverse range of applications across the globe, including the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The companys product portfolio is diversified across two primary segments: Cloud & Networking and Industrial Tech.

The Cloud & Networking segment is a critical component of Lumentums business, providing high-speed transmission components, modules, and subsystems for cloud data centers, AI/ML, enterprise, and communications services networking applications. The companys products enable the transmission and transport of data, video, and audio over high-capacity fiber-optic cables, supporting the growing demand for high-speed data transmission.

Lumentums Industrial Tech segment serves a broad range of industries, including semiconductor device, solar cell, display, electric vehicle, and battery manufacturing markets, as well as materials processing and precision micromachining end-markets. The companys products, such as solid-state lasers, kilowatt-class fiber lasers, and ultrafast lasers, are used in various applications, including manufacturing and materials processing.

From a technical analysis perspective, Lumentums stock has shown a strong upward trend, with the last price at $82.11, above its 20-day SMA of $77.29 and 50-day SMA of $65.69. The stock is also above its 200-day SMA of $71.87, indicating a long-term bullish trend. The ATR of 3.54, or 4.32%, suggests moderate volatility.

Fundamentally, Lumentum has a market capitalization of $5.44 billion and a forward P/E ratio of 20.62, indicating a relatively high valuation. However, the companys negative RoE of -48.81% is a concern, suggesting that the company is currently unprofitable.

Based on the technical and fundamental data, a forecast for Lumentum Holdings Inc. is as follows: the companys strong product portfolio and diversified revenue streams are expected to drive growth in the coming quarters. However, the high valuation and negative RoE are potential concerns. Assuming the company can return to profitability, the stock is likely to continue its upward trend, potentially reaching the 52-week high of $100.38. Conversely, if the company fails to improve its profitability, the stock may experience a correction, potentially falling to the 52-week low of $40.28. A more likely scenario is that the stock will continue to trade within its current range, with a potential target price of $90-$95 in the near term, based on its current momentum and valuation.