Should You Buy?

Lumentum (NASDAQ: LITE)

Lumentum (LITE) is a tech stock with strong recent gains and positive analyst ratings, making it look like a good growth opportunity.

Sep. 6, 2025

By Sophia Chen

Lumentum (NASDAQ: LITE)

Buckley, S. (2025). Retrieved September 6, 2025.

If monster stocks were a thing, many would consider Lumentum one. Lumentum is in the tech sector and it is a leader of designing optical and photonic products, specializing in high-performance industrial lasers. Lumentum’s lasers have been found in a range of systems, including 3D sensors and LiDAR systems. These systems are found in self-driving vehicles, robots, and other forms of industrial AI. It’s also been a consolidator in the fiber-optic components, with its optical components used in iPhones. 

According to the Zacks Momentum Score, the stock has a rating of an A. Additionally, it also has a Zacks Rank of #1, making it a strong buy at the current moment. When considering if a stock is a good momentum stock, is to look at the short-term price activity. This shows the current interests as well as whether the buyers or the sellers have the advantage. For LITE in particular, the shares were up 3% this past week. The monthly price change for LITE is 13.83%, which is astoundingly high compared to the industry’s, which is 1.39%. 

When looking at the average 20-day trading volume, LITE is averaging at around three million shares in the last 20 days. Additionally, the shares are up 142% over the past 12 months, and 60% in 2025. According to Yahoo Finance, 17 recent analysts reviewed the statistics, with 13 saying to Buy and 4 saying to Hold, ending with a Strong Buy consensus rating. 

Its current IBD Composite rating, a composite of five single ratings into one, has a score of 99, which is the best possible score. Generally, any stock with a rating of 90 or above is worth looking into for long term growth. All in all, LITE currently seems to be a good stock to look into possibly purchasing, as its current sentiment appears to be bullish and there are major signs it is a good stock to hold onto for growth.