Electronic devices act as the backbone of the global information age, and Lumentum Holdings Inc. (NASDAQ: LITE) is the best player in the game. Looking at its fundamentals, it is clear that LITE stock is ideal for long-term investors looking for steady and sustained gains.
Lumentum’s Solid Market Positioning
Lumentum Holdings Inc. (LITE) is such a robust play primarily due to the optimal competitive position it holds in the market. It is an original equipment manufacturer, which makes it vital in the supply chain, with its list of clients including some of the top players in the tech space, such as Apple Inc. The company specializes in high-quality fiber optic components, 3D sensing technology, as well as laser products, each of which is fundamental to some of the largest global industries. Given the relationships Lumentum has established, as well as its high-quality production capabilities, it holds a major competitive edge that is difficult to replicate, especially considering its scale of operations.
LITE’s Fundamentals and Potential
It is apparent that the company had taken a short-term beating during the supply-chain disruptions seen in the outbreak of the Covid-19 outbreak. Despite this, however, its recent performance shows the company is back to its rocketing growth trajectory, with top and bottom-line guidance for 2023 set at 23% and 6%, respectively. Lumentum is also eyeing a crucial acquisition for next year, by purchasing NeoPhotonics, for over $900 million. Similarly, the management is confident that cost-savings next year are all set to total upwards of $50 million, enhancing LITE’s overall efficiency.
LITE is a strong stock to consider for those seeking to take on a long-term climb. The business did face its fair share of challenges in recent years, but its strong positioning in the market sets it up above all competition. The coming years bring good news for those with stakes in the company.