Lumen Technologies (LUMN) stock is currently navigating a challenging technical landscape, with a Day Typical Price of 3.1 and a Day Median Price of 3.12, indicating a slight bearish sentiment. The stock's 50-day moving average stands at 1.35, while the 200-day moving average is slightly higher at 1.43, suggesting potential resistance levels. Despite a substantial short interest of 140.5 million shares and a short ratio of 12.22, the overall analyst consensus remains a "Hold," with three analysts recommending sells. The Wall Street target price is set at 1.49, significantly below the current trading levels, reflecting concerns over the company's financial health, highlighted by a staggering net income loss of 10.3 billion. With a PEG ratio of 54.58 and a Price to Sales ratio of 0.22, Lumen's valuation metrics indicate that investors should proceed with caution as the stock attempts to unlock its potential amidst these technical challenges. While some millennials may be indifferent to the telecommunications sector, it's important to consider Lumen Technologies and its potential for recovery. We remain confident in the company's prospects due to several key factors. The stock price movements reflect broader market trends, but healthy primary indicators suggest the possibility of long-term gains for Lumen investors. Currently, the stock is experiencing above-average trading activity, which could signal positive momentum ahead.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Lumen Technologies. In general, sophisticated investors focus on analyzing Lumen Technologies stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Lumen Technologies's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of Lumen Technologies's intrinsic value. In addition to deriving basic predictive indicators for Lumen Technologies, many experienced traders also check how macroeconomic factors affect Lumen Technologies price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Lumen Technologies' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Lumen Technologies. Your research has to be compared to or analyzed against Lumen Technologies' peers to derive any actionable benefits. When done correctly, Lumen Technologies' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Lumen Technologies.
How does Lumen Stands against Peers?
Analyzing Lumen Technologies competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Lumen Technologies across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
Lumen Technologies Competition DetailsLumen Technologies Gross Profit
Lumen Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Lumen Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Lumen Technologies Gross Profit growth over the last 10 years. Please check Lumen Technologies'
gross profit and other
fundamental indicators for more details.
Closer look at Lumen Technologies Variance
Lumen Technologies has current Variance of 39.37. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security.
A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2N |
| = | 39.37 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Let's now compare Lumen Technologies Variance to its closest peers:
| LUMN | 39.36681623211157 |
| VZ | 1.54 |
| TMUS | 1.19 |
| DISH | 20.87 |
| CMCSA | 1.78 |
"Opportunities don't happen. You create them." - Chris Grosser. Lumen Technologies (LUMN) is currently navigating a challenging landscape, reflected in its technical indicators. With a current price around 3.1, the stock is significantly below its 52-week high of 4.2, suggesting potential for recovery. The company’s cash flow from operations stands at 2.16 billion, indicating some operational strength despite reported losses of 10.3 billion in net income. The stock's beta of 1.14 suggests it is slightly more volatile than the market, which could present both risks and opportunities for investors looking to capitalize on its potential upside of 9.6%. As LUMN continues to adapt within the telecom services industry, investors should monitor these technical signals closely..
Lumen Technologies to slide back in September
Lumen Technologies has recently seen an increase in its Sortino ratio, now exceeding 0.46, indicating improved risk-adjusted returns for investors. However, market sentiment suggests that the stock may face downward pressure as we enter September. Potential macroeconomic headwinds and competitive challenges in the telecommunications sector could contribute to a decline in Lumen's stock price, making it crucial for investors to remain cautious in the coming weeks. The company is exhibiting above-average volatility, which can help investors time the market effectively. Utilizing volatility indicators allows traders to assess Lumen's stock risk against market fluctuations during both bullish and bearish trends. Increased volatility in bear markets can directly affect Lumen's stock price and create stress for investors as they watch their shares decline in value.
Our Final Take On Lumen Technologies
Although other companies within the telecom services industry are still a little expensive, even after the recent corrections, Lumen Technologies may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Lumen valuation and our trade advice on Lumen Technologies is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lumen Technologies.
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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