Lumentum and Bloom Energy Climb Ahead of EPS All-Stars Reconstitution
We are seeing shares of current EPS All-Stars strategy component Lumentum ($LITE) climb today. The reason is GF Securities is out with positive comments on Lumentum, saying the company is benefiting from the faster-than-expected ramp of Nvidia’s ($NVDA) co-packaged optics (CPO) business. Those comments follow Citi raising its LITE price target yesterday to $1,400 from $1,200 given the $11 billion optical switch market opportunity it see for the company and others.
Outpacing the move in LITE shares is the double-digit pop this morning in shares of fellow EPS All-Stars resident Bloom Energy ($BE). Yesterday, RBC reiterated its $335 price target for BE following signs the company is leasing additional floor space for manufacturing, which it reads as positive for demand and the strength of Bloom’s pipeline. Today, Jefferies raised the firm’s price target on Bloom Energy to $264 from $229, noting the premium multiple is “reasonable today with a window to book onsite generation for speed-to-power.”
Near $295, BE shares are trading at ~60x expected 2027 EPS of $4.90 and 41x expected 2028 EPS of $7.20 compared to the $1.96 the market sees this year.
That accelerated pace of EPS growth at Bloom Energy explains why the shares are included in the Portfolio’s EPS All-Stars basket.
Upcoming EPS All-Stars Reconstitution Calendar
As a reminder, we will begin the quarterly reconstitution process for that basket tomorrow afternoon and conclude that process before the market open Thursday morning.
Wednesday, September 30: Exit any EPS All-Stars residents that did not make the cut for Q4 2026.
Thursday, October 1: Before the market open, we will buy shares of new EPS All-Stars holdings for the final quarter of the year. We will also upsize each of the carried over holdings to 1% of the Portfolio’s assets.
As we get ready to close out Q3 2026, the basket’s QTD return is around -2.4% compared to 66.7% for Q2 2026 and 5.8% for Q1 2026.
More Pro Portfolio:
- Charting the Markets: Leaving an Ugly September Behind
- 26 Signals Across 9 Portfolio Themes
- Weekly Roundup: Waiting for the Market to Show Its Hand
At the time of publication, TheStreet Pro Portfolio was long BE, LITE, and NVDA.
