A 5-Day Winning Streak Has Lumentum Stock Up 22%
Lumentum (LITE) stock is on a 5-day winning streak, up 22.2% since the run began. That added about $14.3 billion to the company’s market value, which now stands at about $78.5 billion. The stock closed at $919.53 on Thursday, October 29, 18.9% below its 52-week high of $1,133.40 and 388.2% above its low of $188.36.
The Streak Next To The S&P 500
Returns for LITE and the S&P 500 over the streak and the periods around it, all ending Thursday, October 29 and including dividends:
| Return Period | LITE | S&P 500 |
|---|---|---|
| 1 Day | 0.6% | -0.3% |
| 5 Days (Current Streak) | 22.2% | 0.8% |
| 1 Month (21 Trading Days) | -5.3% | 1.0% |
| 3 Months (63 Trading Days) | 28.8% | 3.3% |
| Year To Date | 149.5% | 13.8% |
| 1 Year (252 Trading Days) | 363.5% | 13.3% |
A Stock-Specific Run, Or A Market Move?
Over the same 5 trading days, the S&P 500 returned +0.8% including dividends, so the run is mostly Lumentum’s own story rather than the market’s. 24 other S&P 500 stocks are currently on winning streaks of 5 days or longer. Over the past three months the stock is up 28.8%, a window that includes the streak; over the other 58 sessions of that window it was up 5.4%.
Is The Business Keeping Up With The Stock?
On the fundamentals, revenue grew 83.2% over the last twelve months, against a median of 18.4% for S&P 500 Information Technology stocks; and its operating margin is 17.8%, versus a median of 21.6%. Lumentum does not have positive trailing earnings, so there is no meaningful price-to-earnings multiple to compare. The read is mixed: revenue growth above the median on one side, margins below the median on the other.
If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.