Is LG Display (LPL) Headed for a Breakdown?

LG Display (LPL) is a South Korea-based company that is principally engaged in developing, manufacturing and selling TFT-LCD and OLED display panels. The company’s products consist of panels for notebook computers, monitors, televisions, smartphones, tablets, and others…

In LG Display’s (LPL) most recent quarter, sales hit all-time high due to strong sales in TV displays including OLED. Also supporting revenue was solid performance in IT products and an increase in LCD panel prices.

The company has a current ratio over 1, which indicates it has more than enough liquidity to handle short-term obligations. In terms of growth, analysts forecast revenues to rise 33% year over year in the current quarter and 36.8% for the year.

LPL’s stock appears undervalued with a forward P/E of just 7.52. The stock had been trending up since March, but has shown mixed momentum this year as shown in the chart below.

Take a look at the 1-year chart of LPL below with the added notations…

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