Growth stocks can be some of the most exciting picks in the market, as these high-flyers can captivate investors’ attention, and produce big gains as well. However, they can also lead on the downside when the growth story is over, so it is important to find companies which are still seeing strong growth prospects in their businesses.
One such company that might be well-positioned for future earnings growth is Lumentum Holdings Inc. LITE. This firm, which is in the Lasers Systems and Components industry, saw EPS growth of 96.9% last year, and is looking great for this year too.
In fact, the current growth estimate for this year calls for earnings-per-share growth of 15.1%. Furthermore, the long-term growth rate is currently an impressive 17%, suggesting pretty good prospects for the long haul.
Lumentum Holdings Inc. Price and Consensus
Lumentum Holdings Inc. Price and Consensus | Lumentum Holdings Inc. Quote
And if this wasn’t enough, the stock has actually seen estimates rise over the past month for the current fiscal year by about 3.3%. Thanks to this rise in earnings estimates, LITE has a Zacks Rank #2 (Buy) which further underscores the potential for outperformance in this company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So, if you are looking for a fast-growing stock that is still seeing plenty of opportunities on the horizon, make sure to consider LITE. Not only does it have double-digit earnings growth prospects, but its impressive Zacks Rank suggests that analysts believe better days are ahead for LITE as well.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research