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LG Display (LPL) Stock Sinks As Market Gains: What You Should Know

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LG Display (LPL - Free Report) closed at $8.35 in the latest trading session, marking a -1.88% move from the prior day. This change lagged the S&P 500's 1.21% gain on the day.

Prior to today's trading, shares of the maker of monitors and panels for TVs, phones and other products had lost 6.59% over the past month. This has lagged the Computer and Technology sector's gain of 1.28% and the S&P 500's loss of 0.9% in that time.

Investors will be hoping for strength from LPL as it approaches its next earnings release. In that report, analysts expect LPL to post earnings of $0.66 per share. This would mark year-over-year growth of 2100%. Meanwhile, our latest consensus estimate is calling for revenue of $7.36 billion, up 36.5% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.04 per share and revenue of $27.38 billion. These totals would mark changes of +1954.55% and +35.55%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for LPL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LPL is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note LPL's current valuation metrics, including its Forward P/E ratio of 4.17. Its industry sports an average Forward P/E of 15.07, so we one might conclude that LPL is trading at a discount comparatively.

We can also see that LPL currently has a PEG ratio of 0.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Peripheral Equipment stocks are, on average, holding a PEG ratio of 0.74 based on yesterday's closing prices.

The Computer - Peripheral Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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