Stocks to buy

Luminar Stock Won’t Be This Cheap for Much Longer

Luminar (NASDAQ:LAZR) has fallen on tough times as of late, but LAZR stock will be shining in the lidar spotlight soon enough.

Source: JHVEPhoto/

Luminar’s weakness in the near-term price action doesn’t make a whole lot of sense.

For one, the near-term fundamental trends underlying the self-driving company are as strong as ever, making this a tremendous buying opportunity.

The autonomous vehicle (AV) space as a whole is also booming right now.

Baidu’s robotaxi tests in China just launched in a fifth city, Waymo expanded its self-driving tests into San Francisco and Domino’s Pizza is delivering pizzas autonomously in Houston via a partnership with Nuro, to name a few examples.

AVs are being tested everywhere. It’s only a matter of time until autonomous vehicles becomes ubiquitous.

As Far as Luminar Goes…

Luminar has been firing on all cylinders.

The company won a big Volvo contract back in June — Luminar’s LiDAR will come standard on the automotive manufacturer’s next-gen model.

On top of that, Luminar’s second-quarter numbers were fantastic. Management hiked full-year 2021 guidance on the back of a super strong contract pipeline. Luminar’s has also made progress with its low-cost LiDAR package that is meant for integration into vehicle roofs — over 85% of its series production supply chain is locked down. And C-phase production starting in the fourth quarter.

Luminar also debuted its Proactive Safety technology in Munich at the IAA Mobility Summit this last week. This was the first public demonstration of this functionality ever.

The company also recently gained new partnerships with big names like Webasto and Inalfa.

And it continues to bring in new talent to its team as well.

Basically, everything is going right with Luminar, except the price of LAZR stock.

What it boils down to are macro concerns related to inflation and nothing to do with Luminar’s business or concerns with the impending LiDAR-enabled future.

Thankfully, in a multi-year window, none of those inflation concerns matter at all. This is a multi-year growth story. So buy the dip, forget the rest, and watch as LAZR stock hits $100-plus in the long term.

However, Luminar is but one of my top picks that will score investors big returns over the long haul … meaning it’s far from the only hypergrowth stock on my radar.

In fact, in my free e-letter, Hypergrowth Investing, I cover emerging megatrends and high-risk, high-reward stock picks every day.

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Happy investing.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.