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

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

LG Display Co. (LPL) is a stock many investors are watching right now. LPL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 15.18 right now. For comparison, its industry sports an average P/E of 20.28. Over the last 12 months, LPL's Forward P/E has been as high as 27.19 and as low as -27.00, with a median of 12.93.

LPL is also sporting a PEG ratio of 0.56. 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. LPL's PEG compares to its industry's average PEG of 0.85. Over the last 12 months, LPL's PEG has been as high as 1.01 and as low as -0.48, with a median of 0.67.

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

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This article originally published on Zacks Investment Research (zacks.com).

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