{"id":46793,"date":"2026-04-10T15:34:23","date_gmt":"2026-04-10T15:34:23","guid":{"rendered":"https:\/\/foreignnewstoday.com\/?p=46793"},"modified":"2026-04-10T15:34:23","modified_gmt":"2026-04-10T15:34:23","slug":"think-its-too-late-to-buy-lumentum-heres-the-case-for-getting-in-now","status":"publish","type":"post","link":"https:\/\/foreignnewstoday.com\/?p=46793","title":{"rendered":"Think It\u2019s Too Late to Buy Lumentum? Here\u2019s the Case for Getting In Now"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div data-testid=\"article-body\">\n<div class=\"bodyItems-wrapper\">\n<ul class=\"yf-1p2hw41\">\n<li class=\"yf-1p2hw41\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Lumentum (LITE) surged 1,691% over the past year to $896.02, with non-GAAP EPS accelerating from $0.57 in Q3 FY25 to $1.67 in Q2 FY26 and Q3 guidance calling for $2.15 to $2.35, while optical circuit switch backlog exceeded $400M and co-packaged optics secured multi-hundred-million-dollar purchase orders.<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1p2hw41\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Lumentum trades at a forward P\/E of 86x with a PEG ratio of 0.63, signaling growth is not fully priced in, but the stock has already climbed past Wall Street\u2019s $740 consensus target, insiders are selling heavily, and Q3 FY26 guidance of $780M to $830M (85% year-over-year growth) sets a high bar for the May 5 earnings report.<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1p2hw41\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. <a class=\"link \" href=\"https:\/\/247wallst.com\/lp\/top-10-ai-stocks\/?i=70c1de3f-18da-40f3-b518-e049463858b2&amp;p=ecf6d5a4-7e6e-4e25-84bb-587ab66e3617&amp;pos=keypoints&amp;tpid=1580036&amp;l=638c347b-1fc0-4533-9fc4-e1873549c1c3&amp;c=de44328e-c72f-42e3-a560-da454af2ac81&amp;utm_source=yahoo&amp;utm_medium=referral&amp;utm_campaign=feed&amp;utm_content=feed||1580036\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Get them here FREE;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Get them here FREE&quot;}\">Get them here FREE<\/a>.<!-- HTML_TAG_END --><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><strong>Lumentum Holdings<\/strong> (<a href=\"https:\/\/finance.yahoo.com\/quote\/LITE\/\" data-ylk=\"slk:NASDAQ:LITE;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;NASDAQ&quot;}\" class=\"link \">NASDAQ:LITE<\/a>) has risen 1,691% over the past year, climbing from $50.02 to $896.02. If you watched that move from the sidelines, the question is fair: is there anything left, or did you miss it?<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The stock is priced for a lot to go right \u2014 and the evidence suggests it will. But the entry risk from here is real, and retirement investors need to weigh both sides with clear eyes.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->At $896.02, Lumentum trades at a trailing P\/E of 257x \u2014 a number that would disqualify most stocks from a retirement portfolio. The forward multiple is the relevant lens. The forward P\/E stands at 86x, and the PEG ratio is 0.63 \u2014 below 1.0, which signals that growth is not fully priced in relative to earnings trajectory.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><em>READ: The analyst who called NVIDIA in 2010 <\/em><a href=\"https:\/\/247wallst.com\/lp\/top-10-ai-stocks\/?i=70c1de3f-18da-40f3-b518-e049463858b2&amp;p=b46e70c8-cf34-4e1c-a27d-bb4cdc79b4f6&amp;pos=mid_content&amp;tpid=1580036&amp;l=638c347b-1fc0-4533-9fc4-e1873549c1c3&amp;c=de44328e-c72f-42e3-a560-da454af2ac81\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:just named his top 10 AI stocks;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;just named his top 10 AI stocks&quot;}\" class=\"link \"><em>just named his top 10 AI stocks<\/em><\/a><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The earnings trajectory supports that reading. Non-GAAP EPS has moved from $0.57 in Q3 FY25 to $1.67 in Q2 FY26, with Q3 FY26 guidance calling for $2.15 to $2.35. Non-GAAP operating margin expanded from 10.8% to 25.2% and is guided to reach 30% to 31% next quarter. That is a company accelerating, not coasting.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Wall Street&#8217;s consensus price target of $740.09 across 18 buy ratings and 5 hold ratings implies the stock has already run past analyst models. That gap is a legitimate caution flag.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Q3 FY26 revenue guidance of $780 million to $830 million represents more than 85% year-over-year growth. Two product lines are still in early ramp. The optical circuit switch backlog &#8220;has surged well past $400 million, the majority of which is slated for shipment in the second half of this calendar year.&#8221; Co-packaged optics secured an incremental multi-hundred-million-dollar purchase order with delivery expected in H1 calendar 2027.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p>   <button class=\"secondary-btn fin-size-large readmore-button    rounded   yf-r7dg9i\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" data-yga=\"{&quot;yLinkElement&quot;:&quot;readmore&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Story Continues&quot;}\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->CEO Michael Hurlston stated on the Q2 earnings call: &#8220;The headline for this quarter is that the vast majority of this growth is still ahead of us.&#8221; The company underships customer demand by approximately 30% due to manufacturing constraints \u2014 booked demand exceeds current output. Next earnings are confirmed for May 5, 2026, 26 days away, and Q3 guidance already sets a high bar.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Three risks deserve direct attention. First, the balance sheet carries $3.24 billion in current long-term debt against shareholders&#8217; equity of $846.6 million \u2014 a leverage profile that leaves little cushion if revenue growth stalls. Second, insider activity over the past three months has been one-sided selling, with 70 disposal transactions and zero open-market purchases. The CEO sold 20,169 shares at $551.99 in February. The CFO executed 13 separate sales on February 27 at prices ranging from $677.78 to $699.28. Third, the stock trades well above its 200-day moving average of $305.14, meaning any demand slowdown or guidance miss would face a long drop before technical support.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Geopolitical risk adds another layer \u2014 the company has flagged trade restrictions and tariff exposure in SEC filings, with manufacturing across multiple international jurisdictions.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->For a growth-oriented investor with a multi-year horizon and volatility tolerance, Lumentum still has a credible earnings case ahead of it. The PEG ratio, accelerating revenue, and two product lines in early ramp argue that the earnings story has not peaked. But for a retirement investor who needs capital preservation as much as growth, entry risk from $896 is real: the stock has run past Wall Street&#8217;s consensus target, insiders are selling at scale, and a single guidance miss before May 5 could reprice the stock sharply lower.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->If you are retirement-focused, wait for the Q3 earnings report on May 5 before committing new capital \u2014 let the next data point confirm the trajectory rather than betting ahead of it.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Wall Street is pouring billions into AI, but most investors are buying the wrong stocks. The analyst who first identified NVIDIA as a buy back in 2010 \u2014 before its 28,000% run \u2014 has just pinpointed 10 new AI companies he believes could deliver outsized returns from here. One dominates a $100 billion equipment market. Another is solving the single biggest bottleneck holding back AI data centers. A third is a pure-play on an optical networking market set to quadruple. Most investors haven&#8217;t heard of half these names. <a class=\"link \" href=\"https:\/\/247wallst.com\/lp\/top-10-ai-stocks\/?i=70c1de3f-18da-40f3-b518-e049463858b2&amp;p=01173850-71f4-455c-bfa3-d0377c4d2d64&amp;pos=end_of_article&amp;tpid=1580036&amp;c=de44328e-c72f-42e3-a560-da454af2ac81&amp;l=638c347b-1fc0-4533-9fc4-e1873549c1c3&amp;utm_source=yahoo&amp;utm_medium=referral&amp;utm_campaign=feed&amp;utm_content=feed||1580036\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Get the free list of all 10 stocks here;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Get the free list of all 10 stocks here&quot;}\">Get the free list of all 10 stocks here<\/a>.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/markets\/stocks\/articles\/think-too-buy-lumentum-case-152549891.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lumentum (LITE) surged 1,691% over the past year to $896.02, with non-GAAP EPS accelerating from $0.57 in Q3 FY25 to $1.67 in Q2 FY26 and Q3&hellip;<\/p>\n","protected":false},"author":1,"featured_media":46794,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[40],"tags":[],"class_list":["post-46793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts\/46793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46793"}],"version-history":[{"count":0,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts\/46793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/media\/46794"}],"wp:attachment":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}