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Is LG Display (LPL) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

LG Display (LPL - Free Report) is a stock many investors are watching right now. LPL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 24.07. This compares to its industry's average Forward P/E of 58.18. Over the past year, LPL's Forward P/E has been as high as 2,237.53 and as low as -8,966.65, with a median of -7.86.

Investors should also recognize that LPL has a P/B ratio of 0.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.29. Over the past year, LPL's P/B has been as high as 0.57 and as low as 0.27, with a median of 0.43.

Finally, investors will want to recognize that LPL has a P/CF ratio of 3.93. 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 12.07. Within the past 12 months, LPL's P/CF has been as high as 27.36 and as low as 2.03, with a median of 5.37.

Value investors will likely look at more than just these metrics, but the above data helps show that LG Display is likely undervalued currently. And when considering the strength of its earnings outlook, LPL sticks out at as one of the market's strongest value stocks.


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