5 Stocks Dominating Today’s Market Action

In this article, we will look at the 5 Stocks Dominating Today’s Market Action. For a deeper discussion and an extended list, please see 10 Stocks Dominating Today’s Market Action.

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5. Lumentum Holdings Inc. (NASDAQ:LITE)

Lumentum Holdings extended its winning streak to a fifth straight session on Thursday, jumping 10.18 percent to close at $772.13 apiece, as investors took heart from Bank of America’s (BofA) price target rating and optimistic outlook for the AI optics market, saying that the total addressable market could hit $90 billion over the next four years.

In a market note, BofA raised its price target for Lumentum Holdings Inc. (NASDAQ:LITE) by 29 percent to $775 from $600 previously, following the latter’s comments that it expects the market to grow at a compounded annual growth rate (CAGR) of 40 percent from last year’s $18 billion.

Lumentum Holdings Inc. (NASDAQ:LITE) said that the expansion is expected to be supported by pluggables, lasers, co-packaged optics, optical circuit switches, and data center interconnects, among others.

Analyst upgrades aside, the rally can also be attributed to continued portfolio positioning, ahead of Lumentum Holdings Inc.’s (NASDAQ:LITE) official inclusion in the S&P 500 index effective Monday, March 23.

Listed companies typically experience significant movements in their share prices during index rebalancing activities, as funds and institutional investors would need to reposition their portfolios to mirror the composition of the index being tracked before the effective date.

Its inclusion in the S&P 500 marks a significant milestone and promotion, after being a previous component of the S&P MidCap 400.