Why Lumentum Holdings Stock Gained 16.2% in October

Shares of Lumentum Holdings (NASDAQ: LITE) rose 16.2% in October according to data provided by S&P Global Market Intelligence. The company is a maker of optical sensor technologies and a supplier for Apple's (NASDAQ: AAPL) mobile devices. Its stock climbed in relation to strong demand for the iPhone X and favorable earnings reports from related suppliers.

Win Semiconductor, which supplies a component for the Lumentum chips that are used in Apple devices, released a September revenue report on Oct. 5, showing that its sales had increased roughly 24% year over year. Lumentum's shares climbed roughly 6% the day of trading following the news. The stock posted another 6% daily gain on Oct. 16 following news that AMS, a company that's also presumed to be an Apple supplier, posted a better than expected earnings forecast. Shares then climbed higher in the lead up to the company's Nov. 1 earnings report.

Image source: Lumentum.

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Source: Fool.com