Opinions The Panic-Proof Portfolio (Stockchase Research)
Lumentum HoldingsLITEPAST TOP PICKApr 26, 2022
(A Top Pick Apr 12/22, Down 2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LITE has triggered its stop at $85. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 2%, when combined with our previous buy recommendation.
$82.93
Stock price when the opinion was issued
$881.26
As of Sep 04, 2026. Market Open.
electricalelectronic
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PAST TOP PICK
(A Top Pick May 13/26, Down 20%)
(Note the short timeframe.) He trimmed. Super-high volatility. When it runs away he likes to lighten up a bit, then come back and buy cheaper. He's tracking it closely.
Nick Mersch, CFAOwned
electricalelectronic
BUY
Competitor to COHR. Makes the lasers for laser-based communication. Very excited about it. Very attractive on this pullback. You need to be patient until 2027-28, when the real upside in optical components comes through.
Ivana DelevskaOwned
electricalelectronic
TOP PICK
At the core of the idea that data centres need to scale up, out, and across. This name focuses on scaling out. Laser and optical components that move data between chips inside the data centres.
You have to listen when NVDA speaks, and it invested $2B in this name plus put in a bunch of product orders. No dividend.
Nick Mersch, CFAOwned
electricalelectronic
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly As the company continues to develop 3D sensing products essential to the automotive and industrial sectors, we again reiterate LITE as a TOP PICK. It trades at 18x earnings compared to peers at 31x. Recently reported earnings matched expectations and the company is managing a ROE of 17%. It continues to grow its cash reserves while buying back shares and retiring debt. We continue to recommend a tight stop loss at $85, looking to achieve $116 -- upside potential over 32%. Yield 0% (Analysts’ price target is $115.92)
electricalelectronic
Premium contentTOP PICK
Stockchase Research Editor: Michael O’Reilly We again reiterate our recommendation of LITE (maker of fiber optic network products essential in the 5G rollout) as a TOP PICK. It trades at 19x earnings compared to peers at 65x. Recently reported earnings matched expectations and the company is managing a ROE of 18%. It continues to grow its cash reserves while buying back shares. We continue to recommend a stop loss at $85, looking to achieve $113 -- upside potential over 18%. Yield 0% (Analysts’ price target is $113.00)
electricalelectronic
Premium contentPAST TOP PICK
Premium contentPAST TOP PICK
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate our recommendation of LITE (maker of fiber optic network products essential in the 5G rollout) as a TOP PICK. It trades at 17x earnings compared to peers at 38x. It continues to grow its cash reserves and buying back shares. We would buy this with a stop loss at $70, looking to achieve $100 -- upside potential over 17%. Yield 0% (Analysts’ price target is $96.76)
electricalelectronic
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly LITE is a maker of fiber optic network products, which are essential in the 5G rollout. The stock was recently negatively impacted when it announced it was deferring almost $15 million in quarterly revenue due to delays in 5G deployment in China due to the pandemic. It trades at 16x earnings and earnings growth is projected at 15% for the next five years, as it has averaged the past five. We would buy this with a stop loss at $60, looking to achieve $115 - upside potential over 46%. Yield 0% (Analysts’ price target is $115.14)
electricalelectronic
