Strong On High Volume: LG Display (LPL)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified LG Display ( LPL) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified LG Display as such a stock due to the following factors:

  • LPL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • LPL has traded 710,136 shares today.
  • LPL is trading at 9.20 times the normal volume for the stock at this time of day.
  • LPL is trading at a new high 3.09% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on LPL:

LG Display Co., Ltd. manufactures and sells thin film transistor liquid crystal display (TFT-LCD) panels in the Republic of Korea, the United States, Europe, and Asia. The stock currently has a dividend yield of 1.4%. LPL has a PE ratio of 2. Currently there are 2 analysts that rate LG Display a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for LG Display has been 522,600 shares per day over the past 30 days. LG Display has a market cap of $8.1 billion and is part of the technology sector and electronics industry. Shares are down 25.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates LG Display as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.3%. Since the same quarter one year prior, revenues rose by 20.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels.
  • LG DISPLAY CO LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LG DISPLAY CO LTD increased its bottom line by earning $1.16 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $1.16).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 650.9% when compared to the same quarter one year prior, rising from -$75.10 million to $413.67 million.

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