We recently published a list of 10 Best Multibagger Penny Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Lumen Technologies, Inc. (NYSE:LUMN) stands against other best multibagger penny stocks to buy according to billionaires.

Penny stocks always seem like bargains for gaining exposure to some of the fastest-growing segments or spectacles, especially when popular stocks cost hundreds or thousands of dollars. Given that some cost as little as $2, they can be tempting for growing money quickly without spending much. While it’s possible to achieve significant returns while investing in companies with depressed stock prices, caution is always of utmost importance.

Low-priced stocks come with elevated levels of volatility as reduced liquidity makes them speculative, high-risk investments. Over the years, massive penny-stock scams have cheated thousands of investors out of millions of dollars, even as others have generated a fortune out of them. 2024 was one such year where investors betting on penny stocks generated a fortune as the overall stock market remained bullish. Explosive gains came into play as the equity outlook improved on expectations that the US Federal Reserve would cut interest rates.

Amid the current correction in the equity market after two years of blockbuster gains, penny stocks are increasingly becoming popular owing to their depressed valuations. President Donald Trump’s eldest son, Donald Trump Jr., and Lara Trump have already joined the fray in acquiring significant stakes in a conservative radio network, affirming renewed interest in thinly traded companies.

Nevertheless, in the face of rising trade tensions and the lowest consumer confidence seen in almost three years, US markets have faced significant fluctuations. Yet, despite these obstacles, the idea of penny stocks continues to hold relevance as investors hunt for low-cost options with potential for growth. Often linked with smaller or emerging companies, these stocks can present considerable upside when supported by robust financials and sound fundamentals.

It is possible to realize impressive returns by investing money into young firms with small market valuations or undervalued stock prices. That is especially the case at a time when President Trump is increasingly pushing for lower interest rates in the US. Like large-cap stocks, penny stocks tend to do well in low-interest rates environments as acquiring capital to accelerate operations and generate shareholder value becomes easier and more affordable for new and emerging companies.

Our Methodology

For this article, we used a stock screener first to identify stocks priced under $5 that have posted huge gains over the past year (at least 100%). From the obtained dataset, we selected penny stocks with the highest percentage gains in stock performance over the past year (as of April 21). The list is ranked based on the number of billionaires that hold stakes in them, the data for which we sourced from Insider Monkey’s proprietary database.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Close-up of a technician's hands adjusting a communication router.

Lumen Technologies, Inc. (NYSE:LUMN)

Number of Billionaire Holders: 9

1-Year Gain as of April 21: 141.91%

Share Price as of April 21: $3.29

Lumen Technologies, Inc. (NYSE:LUMN) is a telecommunications company that offers communications, network services, security, cloud solutions, voice, and managed services through its fiber optic and copper networks. Up by 141.91% over the past year, it is turning out to be one of the best multi-bagger penny stocks to buy, according to billionaires.

That’s partly because Lumen Technologies, Inc. (NYSE:LUMN) increasingly benefits from the artificial intelligence spectacle. It has already initiated strategic partnerships with Microsoft, Meta Platforms, and other leading tech companies that require increased connectivity between their data centres. In addition, Lumen Technologies has partnered with Google Cloud to provide advanced cloud and network solutions to meet growing needs for AI workloads.

As more businesses adopt AI technologies, the need for Lumen Technologies, Inc.’s (NYSE:LUMN) reliable and efficient networking solutions should soar. By teaming up with tech giants amid the AI push, Lumen has essentially strengthened and diversified its revenue streams. The partnerships should enhance its top line and competitive edge in the industry. On February 21, Wells Fargo’s Erick Luebchow upgraded the stock rating from Underweight to Equal Weight, setting a $5 price target.

Overall, LUMN ranks 1st on our list of best multibagger penny stocks to buy according to billionaires. While we acknowledge the potential of LUMN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LUMN but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.