Chart of the Day: This Holding Tops the List of New EPS Diplomats in 2026
The stock has been on a torrential run higher and is simply not turning back.
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In the fourth quarter of 2025 we instituted a new, disciplined approach, buying a basket of stocks known at the EPS Diplomats. The first group performed quite well last quarter and yielded some nice gains, pushing higher the total return of TheStreet Pro Portfolio. Now it is time for the second leg of Diplomats, and these look quite good.
First up for a look is Lumentum (LITE) , a stock with an amazingly strong chart that has offered very little chance to get on board. That is the characteristic of the best trends, with high highs and higher lows.
Notice as the stock was making its way higher this fall there were only a few chances to add before it made another leg higher. The performance of Lumentum is spectacular, with the stock clearly a champion for shareholders, rising better than 400% in 2025.
Recently momentum is slowing down, not unlike previous times in the November and December. Moving average convergence divergence (MACD) is on a sell signal and money flow has pulled back, but so has volume as LITE moves sideways, which is what you want to see when the stock is consolidating as it is now.
As a member of the EPS Diplomats, Lumentum does not have a rating.
More Pro Portfolio:
- We're Executing Part Two of Our EPS Diplomats Reconstitution With These Buys
- Stocks & Markets Podcast: The Market Setup and Pro Picks for 2026
- December Monthly Roundup: A Year of Ups and Downs, Volatility — And Big Profits
At the time of publication, TheStreet Pro Portfolio is long LITE.
