Is Lumentum Holdings Inc. (NASDAQ:LITE) the Best High Short Interest Stock to Buy Now?

From Yahoo Finance: 2025-04-17 23:02:00

In a recent analysis of high short interest stocks to buy, Lumentum Holdings Inc. (NASDAQ:LITE) is compared against other top picks. The impact of tariffs on inflation and economic stagnation was discussed by Aditya Bhave of BofA Securities, who emphasized the uncertainty caused by trade policy announcements. The Fed’s focus on price stability was also highlighted.

Lumentum Holdings Inc. (NASDAQ:LITE) has a short interest of 20.06% and is held by 57 hedge funds. The company manufactures optical and photonic products, with a focus on Cloud & Networking and Industrial Tech segments. Its revenue in FQ2 2025 increased due to a growing cloud market demand for its photonics innovations, particularly in data transmission for AI applications.

Lumentum is a leader in Electro-absorption Modulated Lasers (EMLs) and is positioned to gain market share in next-gen transceivers. Analysts have upgraded the stock’s rating to Strong Buy. Invesco Small Cap Value Fund reported better-than-expected revenue and earnings for Lumentum in its Q4 2024 investor letter. Overall, LITE ranks 5th on the list of best high short interest stocks to buy now.

For investors interested in AI stocks, there is a promising opportunity for high returns within a shorter time frame. LITE shows growth potential, but there are AI stocks with even greater promise. An AI stock trading at less than 5 times its earnings may offer substantial gains. Check out the report on the cheapest AI stock for more information.



Read more at Yahoo Finance: Is Lumentum Holdings Inc. (NASDAQ:LITE) the Best High Short Interest Stock to Buy Now?