Key insights
- The author highlights Lumen Technologies (LUMN), a major fiber optic network operator, as undervalued due to its strategic infrastructure assets and recent debt restructuring. Upgrades in bandwidth and a positive outlook for optical transmission, exemplified by COHR's S&P inclusion, suggest potential for improved EPS and growth. Decentralized data center trends further support the demand for Lumen's services, presenting a bullish case for the stock.
This one's for the hard core analysts, and I look forward to seeing what discussion emerges on this post.
Trading approximately 0.55x revs, Lumen is the largest easement owner, and one of the largest operators, of Fiber Optic transmission in the United States. Think of it like railroads, for commercial information traffic.
It has been investing in infrastructure upgrades for bandwidth, and in the last 18 months enjoyed management turnover and major debt restructuring.
While the company is still negative EPS on an annual basis, there appears light at the end of the tunnel right at the time that optical transmission chips like COHR just got picked up for S&P inclusion. The secular move toward bringing light closer to compute, and decentralized data centers spread out across the nation mean that the highway for information is as essential as ever.
disclosure: I own shares, and have sold puts over longer time frames.