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LITE · NASDAQ · STOCK

Lumentum

Technology Updated August 08, 2026
$891.20
52W $111.20 – $1085.68
55/100
$69.26B
143.3
1.48
AI Committee Verdict
Watch
55/100
Conviction: Contested · 33% agreement · 6 analysts
+21.8%
Contested

Is LITE Bullish or Bearish?

Mixed. Innellis AI committee rates Lumentum (LITE) Watch with a composite score of 55/100 , based on 6 analysts with 33% agreement. Last updated August 08, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +5.47 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -14.53 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Macro Analyst sees a compelling case — market regime is bullish (bull market -- normal position sizing). Risk Analyst remains cautious — high leverage (debt-to-equity 2.27) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 30.7% shows genuine earnings power backing the valuation — Value
  • Revenue growing 69.0% YoY -- genuine top-line momentum — Growth
  • 4 consecutive earnings beats -- consistent execution — Growth
  • MACD histogram positive -- bullish momentum — Technical
  • Market regime is bullish (Bull market -- normal position sizing) — Macro
  • Beta of 1.54 means this name should amplify a favorable market regime — Macro
Bear Case
  • P/E of 157.4 is expensive by classic value standards — Value
  • Price-to-book of 5.8x prices in significant intangible value — Value
  • Debt-to-equity of 2.27 adds balance-sheet risk to the value case — Value
  • Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
  • High leverage (debt-to-equity 2.27) amplifies downside in a stress scenario — Risk
  • Bollinger bandwidth of 38.4% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 08, 2026
Overall Committee Score
55/100
Agreement
33%
Analysts
6
Conviction
Contested
Sector Rank
Top 82%
of 172 Technology peers
Value Analyst bearish
40 / 100 · High confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
+ ROE of 30.7% shows genuine earnings power backing the valuation
− P/E of 157.4 is expensive by classic value standards
Growth Analyst bullish
67 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ Revenue growing 69.0% YoY -- genuine top-line momentum
− Growth rate is decelerating quarter over quarter -- the trend line matters more than the level
Technical Analyst neutral
58 / 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
Risk Analyst bearish
32 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.27) amplifies downside in a stress scenario
Macro Analyst bullish
70 / 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst neutral
60 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager neutral
55 / 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
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Investment Thesis Evolution

Committee score moved marginally from 57.0 to 54.5.

Analyst-level changes:
  • Growth Analyst: stance neutral->bullish; score 58->67 (+9); +1 bullish signal(s).
  • Macro Analyst: +1 bullish signal(s).
  • News Analyst: stance bullish->neutral; score 64->60 (-4).
  • Risk Analyst: +2 bearish signal(s).
  • Value Analyst joined: bearish at 40.

Comparing 2026-08-07 to 2026-08-08 (1 day apart).

Technical Analysis

RSI (14)
67.8
Neutral
MACD Histogram
20.930
Bullish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Lh Ll
Bollinger %B
0.92
Inside Bands
Price vs Moving Averages
EMA 9
$802.97 Above
EMA 21
$784.78 Above
EMA 50
$801.18 Above
EMA 200
$645.19 Above

Fundamental Analysis

Valuation
33
Growth
71
Profitability
38
Financial Health
49
Cash Flow
70
Valuation
P/E Ratio 143.3×
P/B Ratio 21.41×
PEG Ratio 0.04
Dividend Yield 0.00%
52W High $1085.68
52W Low $111.20
Quality & Growth
ROE 228.3%
ROA 61.4%
Gross Margin 3771.5%
Operating Margin 1009.9%
Revenue Growth YoY
Debt / Equity 1.11
AI Fundamental Assessment
P/E ratio of 143.3 (rich relative to a 15-40x range); Price-to-book of 21.4x; PEG ratio of 0.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 2.3%; Return on assets of 0.6%; Net margin of 17.7%; Gross margin of 37.7%; Current ratio of 1.14 (tight short-term liquidity); Debt-to-equity of 1.11; Free cash flow per share is positive (3.83); Most recent quarter beat estimates by 1.6%; 4 consecutive earnings beats; EPS growth decelerating (+51.8% -> +41.9% QoQ); Analyst estimates rising over recent quarters
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