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Should Value Investors Buy LG Display Co. (LPL) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

LG Display Co. (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 an A grade for Value.

Another notable valuation metric for LPL is its P/B ratio of 0.30. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.80. LPL's P/B has been as high as 0.62 and as low as 0.25, with a median of 0.42, over the past year.

Finally, investors will want to recognize that LPL has a P/CF ratio of 0.73. 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. This stock's P/CF looks attractive against its industry's average P/CF of 1.99. Over the past year, LPL's P/CF has been as high as 1.45 and as low as 0.62, with a median of 1.07.

These are only a few of the key metrics included in LG Display Co.'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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