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Strength Seen in LG Display (LPL): Can Its 9.6% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

LG Display LPL shares soared 9.6% in the last trading session to close at $5.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.4% loss over the past four weeks.

The stock is benefiting from the company’s expanding business across product lines and markets, which is resulting in continued top-line strength. The company is likely to continue benefiting from strong demand for its products from PC vendors, television and smartphone manufacturers.

This maker of monitors and panels for TVs, phones and other products is expected to post quarterly loss of $0.37 per share in its upcoming report, which represents a year-over-year change of -166.1%. Revenues are expected to be $5.33 billion, down 14.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

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For LG Display, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LPL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

LG Display is a member of the Zacks Computer - Peripheral Equipment industry. One other stock in the same industry, Stratasys SSYS, finished the last trading session 3% higher at $13.47. SSYS has returned -16.5% over the past month.

Stratasys' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.03. Compared to the company's year-ago EPS, this represents a change of +200%. Stratasys currently boasts a Zacks Rank of #3 (Hold).


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