Lumentum Holdings Inc. (LITE) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Lumentum (LITE). Shares have been marching higher, with the stock up 16.4% over the past month. The stock hit a new 52-week high of $1085.68 in the previous session. Lumentum has gained 169.2% since the start of the year compared to the 15.3% gain for the Zacks Computer and Technology sector and the 133.1% return for the Zacks Communication - Components industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 5, 2026, Lumentum reported EPS of $2.37 versus consensus estimate of $2.24.For the current fiscal year, Lumentum is expected to post earnings of $8.21 per share on $2.99 in revenues. This represents a 298.54% change in EPS on a 82.03% change in revenues. For the next fiscal year, the company is expected to earn $17.65 per share on $5.53 in revenues. This represents a year-over-year change of 114.96% and 84.76%, respectively.Valuation MetricsLumentum may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Lumentum has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 120.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 57.4X. On a trailing cash flow basis, the stock currently trades at 300.9X versus its peer group's average of 17.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Lumentum currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Lumentum fits the bill. Thus, it seems as though Lumentum shares could have a bit more room to run in the near term.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks