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Bear Of The Day: LG Display (LPL)

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LG Display (LPL - Free Report) is  Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today.  The stock dropped heading into earnings and then missed... but all is not lost.  I held this stock in the Stocks Under $10 portfolio here at Zacks, and have to admit that not that it is at these lower levels, I am enticed.

Description

LG Display Co., Ltd., formerly known as LG Philips LCD Co., Ltd., primarily manufactures and sells thin film transistor liquid crystal display (TFT-LCD) panels. The Company supplies its products to original equipment manufacturers and multinational corporations. LG Display offers TFT-LCD panels in a range of sizes and specifications primarily for use in televisions, notebook computers, and desktop monitors, as well as for handheld application products, such as mobile phones; and medium and large size panels for industrial and other applications, including entertainment systems, portable navigation devices, e-paper, digital photo displays, and medical diagnostic equipment. LG Display Co., Ltd. is based in Seoul, the Republic of Korea.

Recent Earnings

As I look at the earnings history I seet he recent report has the company coming up only 1 penny short.  That is the smallest of misses and on its own should not be a reason to take a pass on this stock.

Estimates Have Moved Down

The losses are getting bigger at LPL, with the current quarter moving from a loss of 2 cents to a loss of 26 cents in just 60 days.  THe full year saw estimates adjusted lower to a loss of $1.10 from a loss of $0.34.

2020 numbers are showing  the company earnings money, and we know that investors love to get in on the switch.  Moving from a loss to a gain is an important distinction that some investors care a lot about.

The 2020 Zacks Consensus Estimate has LPL earnings 17 cents per share.

Valuation

With no earnings, the forward PE is an NA for us.  I see the price to book is only 0.3x so deep value investors are really ready to kick the tires.  This stock could see a huge lift in a China deal comes... but most indicators are telling us that could be a long ways off.

Chart

 

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