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Is Lumentum Stock a Buy Now?

TheMotleyFool

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Is Lumentum Stock a Buy Now?: https://g.foolcdn.com/editorial/images/727456/chip-circuit-lights.jpg

Lumentum's (NASDAQ: LITE) stock plunged nearly 10% on April 6 after the producer of optical chips and lasers posted its latest earnings report. For the second quarter of fiscal 2023, which ended on Dec. 31, its revenue rose 13% year over year to $506 million but missed analysts' expectations by $1 million. Its adjusted net income dropped 13% to $104 million, or $1.52 per share, but still cleared the consensus forecast by $0.20.

Lumentum's growth rates were lumpy, but its stock had already been cut in half over the past 12 months and trades at just 9 times forward earnings. Should investors take the contrarian view and buy this beaten-down tech stock?

Image source: Getty Images.

Source Fool.com

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