Should Value Investors Buy LG Display (LPL) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is LG Display (LPL). LPL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6.55, while its industry has an average P/E of 15.36. Over the last 12 months, LPL's Forward P/E has been as high as 2,237.53 and as low as -8,966.65, with a median of 7.49.
Investors will also notice that LPL has a PEG ratio of 0.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LPL's PEG compares to its industry's average PEG of 0.50. LPL's PEG has been as high as 0.26 and as low as 0.16, with a median of 0.18, all within the past year.
Another valuation metric that we should highlight is LPL's P/B ratio of 0.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.07. Within the past 52 weeks, LPL's P/B has been as high as 0.86 and as low as 0.29, with a median of 0.50.
Finally, our model also underscores that LPL has a P/CF ratio of 2.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. LPL's current P/CF looks attractive when compared to its industry's average P/CF of 6.47. Within the past 12 months, LPL's P/CF has been as high as 7.92 and as low as -210.58, with a median of 2.37.
These are only a few of the key metrics included in LG Display's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LPL looks like an impressive value stock at the moment.
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LG Display Co., Ltd. (LPL) : Free Stock Analysis Report
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