Lumentum (LITE) Surges 8.1%: Is This an Indication of Further Gains?

Lumentum LITE shares soared 8.1% in the last trading session to close at $62.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.9% loss over the past four weeks.Lumentum is benefiting from strong demand for cloud and AI-driven optical networking solutions, expanding hyperscale data center interconnects, and increasing adoption of its high-speed photonics technologies.This optical networking products maker is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +65.5%. Revenues are expected to be $419.13 million, up 14.4% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For Lumentum, the consensus EPS estimate for the quarter has been revised 27.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LITE going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Lumentum is a member of the Zacks Lasers Systems and Components industry. One other stock in the same industry, IPG Photonics IPGP, finished the last trading session 4.4% lower at $58.78. IPGP has returned -8.7% over the past month.For IPG, the consensus EPS estimate for the upcoming report has changed -22.9% over the past month to $0.23. This represents a change of -55.8% from what the company reported a year ago. IPG currently has a Zacks Rank of #5 (Strong Sell).5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks