The Devil in the Details: Analysts Take Aim at Lumentum Holdings Inc. (NASDAQ:LITE)

Lumentum Holdings Inc. (NASDAQ:LITE) currently has an Average Broker Rating of 1.4. This number is based on the 10 sell-side firms polled by Zacks. The ABR rank within the industry stands at 14.

Analysts often use a number of terms—buy, strong buy, near-term or long-term accumulate, near-term or long-term over-perform or under-perform, neutral, hold— to describe their recommendations. But the definitions of these terms can differ from company to company. Instead of making assumptions, investors should read the definitions of all ratings used in each analyst report. They should also consider the company’s disclosures regarding what percentage of all ratings fall into either “buy,” “hold/neutral,” and “sell” groups.

Analysts on a consensus basis are expecting that the stock will reach $68.54 within the year. The ABR is provided by Zacks which simplfies analyst ratings into an integer based number. They use a one to five scale where they translate brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating.
Research analysts study publicly traded companies and make recommendations on the securities of those companies. Most specialize in a particular industry or sector of the economy. They exert considerable influence in today’s marketplace. Analysts’ recommendations or reports can influence the price of a company’s stock—especially when the recommendations are widely disseminated through television appearances or through other electronic and print media. The mere mention of a company by a popular analyst can temporarily cause its stock to rise or fall—even when nothing about the company’s prospects or fundamentals has recently changed.Once the investor has calculated risk and decided on a suitable time horizon, they may be wondering how to best start doing research on particular stocks and the market in general. Working from the top and filtering down, investors may start by studying the overall economy, specific industries, and other markets. Economic trends can have an influence on company earnings, and it is generally beneficial to be aware of what is going on locally and around the globe. Individual investors may decide that they want to start from the bottom and work their way up. This may involve studying specific stocks and looking for ones that are strong, cheap, and solidly performing on the earnings front. Some individuals will combine both methods with the goal of understanding all aspects that could possibly affect the stock market.

Research analysts are predicting that Lumentum Holdings Inc. (NASDAQ:LITE) will report earnings of $0.84 per share when the firm issues their next quarterly report. This is the consensus earnings per share number according to data from Zack’s Research.

Lumentum Holdings Inc. (NASDAQ:LITE) closed the last session at $53.5 and sees an average of 1404788.75 shares trade hands in each session. The 52-week low of the stock stands at $37.5 while the current level stands at 44.82% of the 52-week High-Low range. Looking further out we can see that the stock has moved 31.03% over the past 12 weeks and 27.35% year to date.

Most recently Lumentum Holdings Inc. (NASDAQ:LITE) posted quarterly earnings of $1.15 which compared to the sell-side estimates of 1.18. The stock’s 12-month trailing earnings per share stands at $4.18. Shares have moved $16.94 over the past month and more recently, $15.48 over the past week heading into the earnings announcement. There are 6 analyst projections that were taken into consideration from respected brokerage firms.

Investing in the stock market can be highly challenging. Most investors have the same intentions of trying to maximize profits from investment capital. Realizing that there are many unknowns in the market, investors will need to make sure that they are constantly staying on top of the current economic scene. As most investors know, the market can see big shifts on a daily basis. Being able to deal with the constant ups and downs can be a huge asset to the individual investor’s psyche. Because stock market investing can get highly emotional at times, investors often have to find a way to keep a clear head and make the best possible decisions even when the market terrain gets rocky. Many successful investors have created a plan that they have been able to adhere to through the thick and thin. 

8 analysts rate Lumentum Holdings Inc. a Buy or Strong Buy, which is 80% of all the analyst ratings.