Is Lumen Technologies (LUMN) the Best Stock to Invest in for a Stock Market Game?
March 21, 2025
We recently published a list of 12 Best Stocks to Invest in for a Stock Market Game. In this article, we are going to take a look at where Lumen Technologies, Inc. (NYSE:LUMN) stands against other stocks to invest in for a stock market game.
We all have heard the phrase ‘value isn’t always visible at first glance’ at least once in our lifetime and this isn’t something to overlook, particularly when you are playing the stock game. A small investment results in a big fortune, but only if you’re lucky or a contrarian genius.
In his ‘How To Start Investing in Stocks in 2025 and Beyond’ guide, Peter Gratton provides a list of 7 steps to lead the stock market game. When selecting stocks, it is pertinent to consider stocks with good track records or as he says,
“The greater the chances for outsized growth in a stock, the riskier investing in it will be. Beginners interested in growth stocks should target industries with long-term potential, such as technology or healthcare.”
The foundation of the preference of most of the stocks listed below is how deeply the company embraces AI. Since the last few years, everyone has been going on about AI, just as blockchain was once a buzzword. Research by IDC expects that AI could add around $20 trillion to the global economy by 2030. While Warren Buffett stays away from most of the technology stocks, simply because he doesn’t understand their business, he reports missing out on some golden stocks. Today, almost every investor owns a stock based on the company’s AI-related strategies.
Similarly, analyzing the global demand patterns can help in identifying highly valued sectors. A report by WHO reported that global healthcare spending reached an impressive $10.3 trillion in 2024 underscoring the demand for such a crucial sector. And when you integrate healthcare with the tech sector, that’s when you get another cutting-edge healthcare technology sector, that too is expected to lead the market in the years ahead.
Benjamin Graham, the father of value investing, stated:
“In the short run, the market is a voting machine, but in the long run, it is a weighing machine. Price is what you pay. Value is what you get. The intelligent investor is a realist who sells to optimists and buys from pessimists. The future is never clear, and you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long-term values.”
Thus, it is the long run when the true value of a stock is realized as the short run just focuses on the investors’ sentiments. In making investment decisions, it is important to know the value that you will be getting not the price that you will be paying.
To assist you in getting ahead, we have compiled a list of 12 stocks that have the potential to surpass peers amid the growth of key industries like semiconductors, cybersecurity, health, and AI. These sectors are considered the most-yielding and highly safe bets in this world of extreme volatility.
For this list, we screened for 12 penny stocks from Finviz and Yahoo Finance that have exhibited positive returns in the past year. These companies have been listed in descending order, with the lowest returns to the highest. The growth trend has been captured from Google’s latest stock prices, in correspondence to the returns of the respective shares.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Close-up of a technician’s hands adjusting a communication router.
Price momentum over the past year: 214.91%
Lumen Technologies, Inc. (NYSE:LUMN) is a facilities-based technology and communications company specializing in a range of integrated products and services to target domestic and international markets. With two main segments, namely Business Segment and Mass Market Segment, the company provides communications, network services, security, cloud solutions, and managed services. It also deals in professional services and other ancillary services. The business operations of this Louisiana-based company span North America, Europe, the Middle East, Africa, and Asia-Pacific. The company is committed to streaming innovation by connecting people, data, and apps to drive business growth.
In just a year, Lumen Technologies, Inc. (NYSE:LUMN) has witnessed a growth of over 200%. In its recent earnings call, the company aimed to become the “Backbone for the AI economy”, and this is what will drive its future success. The company considers this year to be the year of investments, with an emphasis on building a network based on AI.
Concerning this, the previous fiscal year was crucial to the company’s plans as it secured $8.5 billion in private connectivity deals with tech powerhouses like Google Cloud, Meta, AWS, and Microsoft. The company can also capitalize on these relationships to increase its offerings and build an image of a trusted network for AI workloads.
Another key development surrounding the company is its collaboration with OneVizion, which further reaffirms Lumen Technologies, Inc. (NYSE:LUMN)’s AI vision. This attempt to revolutionize the future of telecom infrastructure will allow a seamless deployment and lay the basis for the growth of AI-driven networks.
Based on the forecasts by CNN Business, Lumen Technologies, Inc. (NYSE:LUMN) has a strong likelihood of outperforming the market, with a 12-month price target as high as $6.5, reflecting an upside of around 28%. As long as the company’s focus remains AI, we can conclude that the stock is worth the attention.
Overall, LUMN ranks 3rd on our list of best stocks to invest in for a stock market game. While we acknowledge the potential for LUMN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LUMN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
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