11 Best US Stocks to Invest in Under $5

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1. Lumen Technologies, Inc. (NYSE:LUMN)

Share Price: $3.94

Number of Hedge Fund Holders: 39

Lumen Technologies, Inc. (NYSE:LUMN) is one of the 11 best US stocks to invest in under $5. On May 5, Raymond James analyst, Frank Louthan, upgraded the firm’s rating on Lumen Technologies, Inc. (NYSE:LUMN) from “Market Perform” to “Outperform” and set a price target of $4.50.

This decision comes amid expectations that Lumen Technologies, Inc. (NYSE:LUMN) will see important changes over the next six to nine months that could increase the company’s equity value. Louthan suggests that the main reason for this positive outlook is the expected sale of the company’s Fiber-to-the-Home (FTTH) assets and customers.

According to the analyst, selling these assets could greatly improve Lumen Technologies, Inc.’s (NYSE:LUMN) financial situation. It could reduce the company’s financial leverage by as much as a full turn. Louthan expects that the after-tax proceeds from the sale could be a game-changer for the company.

Additionally, the analyst expects that after the sale of its FTTH assets, Lumen Technologies, Inc. (NYSE:LUMN) could benefit from a series of financial events and refinancing opportunities. This could help raise the value of the company’s stock further.

Lumen Technologies, Inc. (NYSE:LUMN) is an American telecommunications company that offers networking, edge cloud, collaboration, and cybersecurity solutions.

While we acknowledge the potential of LUMN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LUMN and that has a 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 10 Best Oil and Gas Stocks to Buy Now.

Disclosure: None.

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