Here’s Why Lumentum Holdings (LITE) Rose in Q4

Invesco Distributors, Inc., an investment management firm, released its “Invesco Small Cap Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund outperformed the benchmark due to stock selection and an overweight in industrials. Despite elevated short-term fears, the firm identified long-term intrinsic value upside across diverse industries. Fund remained overweight in economically sensitive stocks compared to benchmark and peers. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

In its fourth quarter 2024 investor letter, Invesco Small Cap Value Fund emphasized stocks such as Lumentum Holdings Inc. (NASDAQ:LITE). Lumentum Holdings Inc. (NASDAQ:LITE) offers optical and photonic products that operates through Cloud & Networking and Industrial Tech segments. The one-month return of Lumentum Holdings Inc. (NASDAQ:LITE) was -21.67%, and its shares gained 21.67% of their value over the last 52 weeks. On March 11, 2025, Lumentum Holdings Inc. (NASDAQ:LITE) stock closed at $62.05 per share with a market capitalization of $4.294 billion.

Invesco Small Cap Value Fund stated the following regarding Lumentum Holdings Inc. (NASDAQ:LITE) in its Q4 2024 investor letter:

“Lumentum Holdings Inc. (NASDAQ:LITE): The telecommunications equipment maker reported better-than expected revenue and earnings for its recent quarter, along with record orders for its data communications laser chips used in data center applications.”

Is Lumentum Holdings Inc. (LITE) Among Billionaire Steve Cohen’s Top Stock Picks?

A close-up of a technician calibrating a laser beam.

Lumentum Holdings Inc. (NASDAQ:LITE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Lumentum Holdings Inc. (NASDAQ:LITE) at the end of the fourth quarter which was 36 in the previous quarter. Lumentum Holdings Inc.’s (NASDAQ:LITE) fiscal second quarter revenue of $402.2 million and non-GAAP EPS of $0.42 were above the high end of guidance range. While we acknowledge the potential of Lumentum Holdings Inc. (NASDAQ:LITE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Lumentum Holdings Inc. (NASDAQ:LITE) and shared the top AI news updates investors should not miss. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.