Reasons Lumen (LUMN) is an Excellent Option for Value Investors
Momentum Investing Strategy: Momentum investors focus on "buying high and selling higher," avoiding traditional strategies like buying low and waiting for recovery, which can be risky if stocks lose momentum.
Lumen Technologies (LUMN): LUMN is highlighted as a strong candidate for momentum investing, showing a 55.5% price increase over 12 weeks and a favorable Momentum Score of B, indicating potential for further gains.
Valuation Metrics: Despite its momentum, LUMN is trading at a reasonable Price-to-Sales ratio of 0.70, suggesting it is attractively priced relative to its sales, providing room for growth.
AI Investment Opportunities: The article discusses the potential for significant wealth creation in the next phase of AI, with recommendations for under-the-radar companies poised for growth, contrasting with the leveling off of the initial wave of AI stocks.
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AT&T Acquires Lumen's Fiber Business for $5.75 Billion
- Acquisition Scale: AT&T agreed to acquire Lumen's fiber business for $5.75 billion last year, which is expected to add 4 million passed locations and 1 million subscribers, significantly expanding its fiber network and enhancing market competitiveness.
- Integration Cost Impact: AT&T anticipates a $0.05 reduction in adjusted earnings per share in 2026 due to integration costs and additional interest expenses, indicating short-term financial pressure but substantial long-term revenue potential.
- Customer Penetration Opportunity: With Lumen's customer penetration rate at 25%, AT&T has the potential to add approximately 600,000 new customers by improving penetration, further solidifying its market position.
- Cash Flow Growth Outlook: Despite high initial costs, AT&T expects free cash flow to reach at least $21 billion by 2028, demonstrating the strategic value of the Lumen acquisition for long-term growth.

Surge in Options Trading Volume for Lumen and Coupang
- Lumen Options Volume: Lumen Technologies Inc has seen options trading volume of 65,823 contracts today, equating to approximately 6.6 million shares, which represents 60.8% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- High-Frequency Contracts: Within LUMN, the $10 strike call option expiring on January 30, 2026, has traded 22,475 contracts, representing about 2.2 million shares, suggesting an increased bullish sentiment among investors regarding the stock's potential upside.
- Coupang Options Activity: Coupang Inc has recorded an options trading volume of 127,078 contracts today, translating to approximately 12.7 million shares, which is 60.3% of its average daily trading volume over the past month, reflecting active trading interest in its stock.
- Key Contract Insights: For CPNG, the $18 strike put option expiring on May 15, 2026, has seen a trading volume of 20,400 contracts, representing around 2.0 million shares, indicating investor concerns about potential price declines in the future.






