The U.S. economy is regaining its stride after recovering significantly from pandemic woes in the second quarter. The government is trying to maximize its vaccination program through booster shots to help bolster the…
nation’s recovery from the public health crisis-led downturn to pre-pandemic economic levels. The stock market has remained bullish since the beginning of 2021; the S&P 500 index had reported seven consecutive months of gains as of August 30.
With improving macroeconomic conditions, strong consumer spending, and decelerating inflation, the United States may be entering an economic boom bolstered by increased productivity. Historically, mid-cap companies tend to outperform the broader markets during such periods.
Thus, we think fundamentally sound mid-cap stocks KT Corporation (KT – Get Rating) and LG Display Co., Ltd. (LPL – Get Rating) should be solid bets now.
KT Corporation (KT – Get Rating)
KT is a telecom service provider based in Seongnam, South Korea. The company’s offerings comprise fixed-line telephone services, broadband internet services, other data communication services, and media and content services.
On June 14, KT entered a strategic partnership with NeuroSigma, Inc., a California-based life-sciences company, to develop an electronic treatment for neuropsychological and neurological disorders. Regarding this, KT Head of Future Value Promotion Office Kim Hyung-Wook, said, “We are eager to work with NeuroSigma to integrate this industry-leading digital therapy into our growing digital healthcare platform and to develop the next generations of digital therapy.”
In the second quarter of its fiscal year 2021, KT’s operating revenue increased 2.6% year-over-year to KRW6.03 trillion ($5.15 billion). Its operating income increased 38.5% from the prior-year quarter to KRW475.80 billion ($406.83 million). The company’s net income came in at KRW370.80 billion ($317.05 million), up 77.4% from the same period last year. Its EBITDA margin rose 1.4 percentage points year-over-year to 22.8%.
The consensus EPS estimate of $1.63 for the next year (fiscal 2022) reflects a 5.1% year-over-year increase. Likewise, the $21.68 billion consensus revenue estimate for the next year indicates a rise of 2.1% from the current year. The stock has gained 39.7% in price over the past year and 26.3% year-to-date.
KT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
KT has a Value and Stability grade of A, and a Sentiment grade of B. In the 49-stock Telecom – Foreign industry, it is ranked #5. And this industry is rated A.
Click here to see the additional POWR Ratings for KT (Growth, Momentum, and Quality).
LG Display Co., Ltd. (LPL – Get Rating)
LPL is a Seoul, South Korea-based manufacturer of Thin-Film Transistor Liquid Crystal Display (TFT-LCD) and Organic Light Emitting Diode (OLED) technology embedded display panels used in devices such as televisions; notebooks; computers, and mobile devices.
Recently, LPL displayed its new transparent OLED technology at the International Motor Show (IAA) 2021. The product was born from a…
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