Our Stock of the Week is Lumentrum Holdings, Inc. (LITE). LITE provides optical, photonic and communication equipment for a wide variety of uses. Big telecom companies are expanding and enhancing their cloud offerings and this benefits fiberoptic supplies like LITE.
On June 22. DA Davidson put a $77 target on LITE and Stifel put a $73 target on the stock. Both analysts referenced the company’s 3D sensing application which should ‘set the stage for significant earnings power.’ Barrons had some cautious comments about the stock this weekend but it is a longer term thesis based on the idea that some customers like Amazon may develop specialized products in house. Any pullback on this article may offer a good entry.
Technically the stock has been in a trading range around the $60-65 area. Earnings are due out on the morning of August 3 and after the preannouncement by AAOI the prospects for good numbers is strong. We are looking for market players to anticipate a breakout move and to push the stock over the $65 area in the short term.
As always we would not chase the open on Monday but would look for a breakout over $65 and a strong close before adding shares.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength, and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing positions in LITE. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
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