49.70 0.00 (0.00%)
After hours: 5:00PM EDT
|Bid||49.68 x 1200|
|Ask||49.88 x 800|
|Day's Range||48.90 - 49.96|
|52 Week Range||37.00 - 69.95|
|Beta (3Y Monthly)||1.48|
|PE Ratio (TTM)||165.67|
|Earnings Date||Aug 6, 2019 - Aug 12, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||65.54|
This week’s spotlight is Facebook (FB), as the company reveals its new cryptocurrency offering today (June 18, as I write this), and on the US Federal Reserve as the Board’s Federal Open Market Committee will conclude its regular policy meeting tomorrow with a much-anticipated position announcement on interest rates. Facebook’s news has been feeding grist to the rumor mills for nearly a year; the company’s white paper will separate facts from wishful thinking. The Fed has been holding rates steady since December last year; with week’s meeting, market watchers expect some guidance on future cuts.So, the big news is crowding the spotlights, which can make it difficult to see what the smaller guys are up to. But those smaller companies offer plenty in the way of market action. For investors willing to shoulder a bit of extra risk, the rewards can be compelling. We’ll use the TipRanks Trending Stocks data to look at three companies that Wall Street’s top analysts think are positioned for strong gains. Lumentum Holdings (LITE)Lumentum is leading provider of optical and photonic products for datacom, telecom, and commercial lasers. If you’re one of the 900 million iPhone users, then you’re familiar with Lumentum products – the company is a supplier of screen components for the popular smartphone.It’s prominent place in the tech ecosystem – Lumentum is also part of Huawei’s supply chain – has left the company vulnerable to the ‘China Contagion,’ the fallout from ongoing trade tensions between China and the US. The tech industry is generally is vulnerable to the trade spat, as the US is the world’s largest tech consumer and China is a massive exporter of tech products. Lumentum, with its exposure to both Apple (AAPL) and Huawei, is more vulnerable than most. Between May 14 and May 20, LITE shares lost almost 13% when the trade war flared up again.The company is not without hope, however. Writing from Goldman Sachs, analyst Rod Hall has run the numbers on a series of scenarios for LITE’s future. He took careful note of a “a worst-case earnings scenario that assumes 100% of Huawei related revenues are lost and Apple’s iPhone volumes end up being 20% lower than his below consensus estimates.”In that scenario, he described the downside as “…likely [to] deliver about $3.27 in FY (to June) EPS which implies a current forward trading PE of 13.2x vs. a recent historical median PE of 12.3x.”Hall continues, summarizing the case thus: “While acknowledging that a range of outcomes may exist outside our analysis, we highlight that even in our most bearish scenario the implied PE multiple is ~13x at current trading levels. This compares to Lumentum’s median multiple of ~16x since it started trading in 2015… We also flag again that we see our most bearish scenario as unlikely, given iPhone unit weakness is already built into our model. In our note published on May 20 we estimated ~34% of Huawei revenue is replaceable in our central case.”To put it plainly, Hall sees LITE’s vulnerabilities as known factors, which investors are already seeing and taking into account. His most bearish estimates, also, still show the company maintaining a profit. With that in mind, he gives LITE a ‘Buy’ rating and a $69 price target, suggesting a 39% upside.Wall Street’s analysts are in general agreement with Hall’s thesis. With a unanimous 15 buy ratings, LITE has a ‘Strong Buy’ from the analyst consensus. Shares trade for $49, so the average price target of $67 gives a 36% upside.View LITE Price Target & Analyst Ratings Detail RingCentral, Inc. (RNG)Cloud computing has revolutionized communications and networking technology, along with the software industry. Unified Communications as a Service (UCaaS) brings all three together, routing telephone, video links, and data communications through one server. RingCentral is a leader in the industry, with a reputation for reliability and trustworthiness.A strong position in a growing field have put RNG on firm footing. Last month, Oppenheimer analyst Brian Schwartz took note of the company’s “strong Q1 results, anchored by a record deal size, solid business metrics and higher 2019 growth outlook.” Schwartz added that he is “increasingly confident in the company's ability to grow its subscriptions business at Tier 1 rates, while improving operating margins with scale.” In light of that, he raised his price target on RNG shares by 11%, to $130, indicating an 10% upside potential.Writing earlier today, June 18, Needham’s Richard Valera gives RNG an even more bullish target of $140. He said that he “…sees the company deriving benefits from the continued shift from premises-based communications to the cloud as well as its strong product and superior execution.” With that foundation, Valera believes “RingCentral remains well positioned to grow its revenue and increase profitability.” His price target suggests an upside of 18%.RingCentral is another ‘Strong Buy,’ based on an analyst consensus of 9 buys and 1 hold. The average price target is $135; with a share price of $117, that gives an upside of 14%.View RNG Price Target & Analyst Ratings Detail Square, Inc. (SQ)Square has rapidly become a leader in online payment processing. The company’s products are a combination of software and small gadgets designed to conduct transactions from any mobile device. Small merchants can use Square’s reader to run charge cards from a smartphone, while businesses can use Square’s Stand to operate an iPad as a cash register. From a customer perspective it’s a clever idea, while for a small business owner it’s a money-saver.That’s the company’s foundation. Square hasn’t rested on it however; it has been promoting its Cash App for P2P money transfer, and last summer Square’s Cash App surpassed PayPal’s (PYPL) Venmo, its chief competitor, in total downloads. A key factor in the rapid growth of Square Cash is its no-nonsense approach to transactions; where Venmo has been plagued by privacy concerns stemming from its social media newsfeed, Square Cash avoided that pitfall by simply offering quick access to basic financial services.Nomura analyst Dan Dolev has been tracking Square Cash’s performance compared to Venmo, in his coverage of Square, Inc. Dolev notes an increase in Square Cash downloads last month, growing from 2 million in April to 2.2 million in May. According to Dolev’s data, Cash regularly has a monthly download advantage of 400K to 500K over Venmo. He gives SQ shares a ‘Buy’ rating and a $90 price target, based on his read of May’s optimistic data. His price target suggests an upside of 25% to the stock.Writing from Tigress Financial, five-star analyst Ivan Feinseth also sees strong growth potential in Square’s future. He gives the stock a ‘Buy’ rating, and explains: “The company is increasing its gross payment volumes and deepening its seller relationships to expand its customer service base… Square's ability to grow its ecosystem will continue to drive its growing return on capital and increasing economic profit.” Following his usual habit, Feinseth did not set a specific target price for SQ.Shares in Square have a ‘Moderate Buy’ from the analyst consensus, based on 13 buys and 9 holds given in the last three months. The upside potential of 18% is derived from a share price of $71 and an average price target of $85.View SQ Price Target & Analyst Ratings DetailLearn more about which stocks are hot with TipRanks' Trending Stocks tool. This market research tool shows the stocks which have attracted analyst attention in the last 3 days, making it easy to find that companies with the best growth potential. Visit the Trending Stocks tool now.
Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 8 months is one of those periods, as the Russell 2000 […]
Lumentum Holdings Inc NASDAQ/NGS:LITEView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate and increasing * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | NegativeShort interest is moderately high for LITE with between 10 and 15% of shares outstanding currently on loan. This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on June 7. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding LITE totaled $69.65 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Telecommunications Services sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
Shares of Ciena Corp. rocketed 26.3% in morning trade Thursday, putting it on track for the biggest one-day gain in 18 years, after the optical networking company reported big profit and revenue beats for its fiscal second quarter. The stock's trading volume has already topped 10.6 million shares, or more than 4-times the full-day average. The last time the stock, currently the biggest gainer on the NYSE, had a bigger gain was when it closed up 26.5% on Oct. 3, 2001. The rally is also helping to boost the shares of Lumentum Holdings Inc. , up 2.7%, and NeoPhotonics Inc. , up 5.1%. Ciena accounted for 11% of Lumentum's revenue in the fiscal year ending June 2018, and 16% of NeoPhontoics's revenue in the year ended December 2018. Among Ciena's largest customers, shares of both AT&T Inc. and Verizon Communications Inc. tacked on 1.3%. Ciena derived 12.1% of its fiscal 2018 revenue from AT&T and 10.3% of its revenue from Verizon. Ciena's stock has run up 34% year to date, while the S&P 500 has gained 13%.
Skyworks (SWKS) is plagued with customer concentration woes. However, the company is gaining from its portfolio strength, particularly in the 5G applications and IoT market.
Despite generally upbeat economic signs, can we be sure some weak tech reports don't point to a looming slowdown in tech buying more broadly?
For better or worse, Google Glass is back. Parent company Alphabet (GOOG)(GOOGL) has announced a new version of its augmented reality glasses, priced at $999 per headset and targeting businesses instead of consumers.
The United States has effectively banned its companies from doing business with Huawei, exacerbating an ongoing Sino-U.S. trade war. Huawei is allowed to buy U.S. goods until Aug. 19 to maintain existing telecoms networks and provide software updates to its smartphones. - ALPHABET INC: Google on May 19 suspended the transfer of hardware, software and technical services to Huawei, except what it has made publicly available via open source licensing.
Huawei Ban Encourages Qorvo and Lumentum to Cut Earnings Guidance(Continued from Prior Part)Lumentum’s exposure to Huawei The United States has made it difficult for US firms to sell technology to Huawei, a major customer for the semiconductor
Huawei Ban Encourages Qorvo and Lumentum to Cut Earnings GuidanceQorvo and Lumentum cut their guidance after the Huawei ban The semiconductor industry—and smartphone chipmakers in particular—have started to feel the impact of the Huawei ban
Lumentum Holdings stock arrested a four-session, 22% decline after the U.S. government signaled an easing of actions taken against Huawei Technologies, a major customer for Lumentum.
(Reuters) - Radio frequency chipmaker Qorvo on Tuesday joined mobile parts maker Lumentum Holdings Inc in halting shipments to Huawei Technologies, following export restrictions by the United States government. ...
It has gone from bad to worse for the beleaguered semiconductor industry. The escalating trade war between the U.S. and China deepened Monday on reports that some Huawei Technologies suppliers had halted shipments to the Chinese company. Shares of (LITE) (ticker: LITE), a maker of optical and photonic products, dropped 4% after it trimmed its profit guidance for the current quarter as a result of ceasing all shipments to Huawei.
Shares of optoelectronics company NeoPhotonics Corp. were up more than 10% in Monday trading after B. Riley analyst Dave Kang upgraded the stock to buy from neutral, arguing that the uncertainty over a U.S. ban on sales to Huawei Technologies Co. has been "de-risked." Shares dropped more than 30% last week after the ban was announced. "One of the reasons for our renewed bullishness is that we believe the Huawei ban could be another leverage point for President Trump, who is set to meet with China's President Xi at the G20 Summit in late June, and as such, we believe the ban could be fairly brief," Kang wrote. "Furthermore, we believe the Huawei ban will pressure NeoPhotonics management to weigh strategic options, including the potential sale of the company." The upgrade comes as fellow optoelectronics company Lumentum Holdings Inc. lowered its outlook as a result of the Huawei ban and as companies like Alphabet Inc.'s Google began to comply with the order. NeoPhotonics shares are still off 35% on the year, as the S&P 500 has risen 14%.
The company, which is seen as a major supplier of Apple Inc's Face ID technology, said it cannot predict when it will be able to resume shipments. The Trump administration last week added Huawei to a trade blacklist, a move that bans the company from buying parts and components from American firms without U.S. government approval. While most of the U.S. suppliers have not issued statements on their position on the Huawei ban, Bloomberg reported that Intel Corp, Qualcomm Inc, Xilinx Inc and Broadcom Inc have told their employees they will not supply to Huawei until further notice.
supplier, cut its current quarter revenue outlook after saying it discontinued all shipments to China's Huawei Technologies. Lumentum said it now sees revenues for the three months ending in June in the region of $375 million to $390 million, down from its prior forecast of $405 million to $425 million issued on May 7. The cut will hit earnings, as well, Lumentum said, with EPS now guided in the range of 65 cents to 77 cents a share, down from 85 cents to $1.00.
Global equity markets fell on Monday as a U.S. crackdown on China's Huawei Technologies led chipmaker stocks in Europe and on Wall Street to slide on fears of a widening trade war, while the dollar was steady before fresh insight on the Federal Reserve's interest rates policies this week. China accused the United States of harboring "extravagant expectations" for a trade deal, underlining the gulf between the two sides as the U.S. action last week against Huawei began to hit the global tech sector.