5 Best Money-Making Stocks To Buy Now

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

Number of Hedge Fund Holders: 42

Lumen Technologies, Inc. (NYSE:LUMN) is a leading American telecommunications company that provides communications, network services, security solutions, and cloud solutions among other services. At the end of Q2 2022, 42 hedge funds were long Lumen Technologies, Inc. (NYSE:LUMN) and held stakes worth $1.02 billion in the company. This is compared to 30 positions in the previous quarter with stakes worth $904.85 million. The hedge fund sentiment for the stock is positive.

Shares of Lumen Technologies, Inc. (NYSE:LUMN) have pulled back in 2022 and are now presenting an attractive buying opportunity for investors. As of October 19, the stock has a trailing twelve-month PE ratio of 3.65 and is awarding shareholders with a forward dividend yield of 14.12%. Lumen Technologies, Inc. (NYSE:LUMN) has free cash flows of over $3 billion and is one of the best money-making stocks to buy now.

This October, Citi analyst Michael Rollins revised his price target on Lumen Technologies, Inc. (NYSE:LUMN) to $8 from $11 and reiterated a Neutral rating on the shares.

As of June 30, Knoll Capital Management is the most prominent investor in Lumen Technologies, Inc. (NYSE:LUMN) and has stakes worth $1.09 million in the company.

Here is what Longleaf Partners had to say about Lumen Technologies, Inc. (NYSE:LUMN) in its third-quarter 2022 investor letter:

“Lumen Technologies, Inc. (NYSE:LUMN) – Global fiber company Lumen was the top detractor in the quarter. In September, the company announced a new CEO, Kate Johnson, would take over for Jeff Storey. Johnson has a strong track record of delivering organic revenue growth, the primary area where Lumen has struggled. Johnson held previous roles at GE and Microsoft, where she most recently served as head of Microsoft US and doubled her division’s revenue in only four years. Multiple checks through our network vouch for her and suggest this leadership change is a positive upgrade that will bring the discipline and focus on sales that Lumen has been missing. The market reacted negatively with concern over the potential for another dividend cut or strategy change. We are confident the stock price reaction is highly overblown versus any impact that a potential dividend cut would have on value per share. The stock now trades at 4.5x EBITDA, and we believe the best value accretive capital allocation move today is share repurchase. Shortly after quarter end, Lumen closed on the sale of part of its consumer business to Apollo, further improving its balance sheet and business mix.”