Lumentum Holdings, Inc (NASDAQ: LITE) manufactures and sells optical and photonic products worldwide. The company operates in two segments, Optical Communications (used in cloud networking, data transmission and submarine communications) and Commercial Lasers (used in sheet metal and circuit board manufacturing). Lumentum is considered one of the top growth stock for now and the long term. The following important factors, as listed below, show why Lumentum is a great growth stock.
- Lumentum’s historical EPS (earning per share) growth rate is 82.7% and expected to grow 15% this year, which crushed the industry average. Lumentum’s earnings growth is in double digit every year.
- Lumentum has higher cash flow growth than its peers year-over-year.
- Lumentum’s year earnings estimates have been revising upward every year.
- Many hedge funds and stock analysts are bullish about Lumentum stocks.
In summary, investors should consider owning Lumentum stocks for long term growth.