We recently published a list of 11 Best Consumer Electronics Stocks to Invest in Now. In this article, we are going to take a look at where LG Display Co., Ltd. (NYSE:LPL) stands against other best consumer electronics stocks to invest in now.
The global consumer electronics market has seen significant growth, reaching a valuation of $755 billion in 2024, with projections to hit $1.15 trillion by 2031, according to Research and Markets. This growth is driven by rising demand for innovative devices that enhance convenience. Consumer electronics, including smartphones, tablets, smartwatches, and connected home devices, have transformed how people live, work, and connect.
Continuous innovation also keeps the industry competitive, with companies focused on attracting consumer interest. Despite global economic challenges, the market remains resilient, driven by advancements in AI. In 2023, smartphone shipments reached about 1.2 billion units, reinforcing this category’s profitability. The market is projected to grow to $1.13 trillion by 2025, with a 3% annual growth rate. North America, particularly the US, is at the forefront of the consumer electronics market, leading globally in terms of adoption and demand. The region is expected to maintain this leadership due to its swift embrace of cutting-edge technologies. In the US, the fast-paced lifestyle increasingly revolves around digital solutions, with automation becoming a key priority.
Tim Seymour, Seymour Asset Management CIO, appeared on CNBC’s ‘The Exchange’ on January 18 to signify upcoming events and how they might correlate with current market dynamics. Seymour notes that the tech sector, which includes consumer electronics, has rallied under President Trump, creating a favorable hiring environment. He believes that at least half of the MAG7 stocks have defensible valuations. Regarding tariffs, he suggests that consumer-centered sectors, like consumer electronics, will be impacted first, with reports indicating that tariffs could negatively affect the economy, as highlighted by the World Bank and IMF.
Discussing the economic implications of tariffs, Seymour expressed skepticism about tax increases while acknowledging uncertainty around reductions. He reflected on the tariffs imposed against China in 2018 and 2019, which impacted manufacturing, including consumer electronics. While tariffs may hinder growth, he noted that a strong dollar could enhance the competitiveness of US products abroad. Seymour focused on tech companies with solid valuations for their growth potential. Large MNCs in consumer electronics may perform better with upcoming announcements and are less vulnerable to strategic influences than smaller firms. While he is cautious about growth scares overshadowing inflationary pressures in 2025, he maintains a positive sentiment overall.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top consumer electronics stocks. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A bright lcd monitor in a modern office, showing the technology developed by the company.
LG Display Co., Ltd. (NYSE:LPL)
Number of Hedge Fund Holders: 4
LG Display Co., Ltd. (NYSE:LPL) manufactures innovative thin-film transistor liquid crystal display (TFT-LCD) and organic light-emitting diode (OLED) panels. Its products power a range of devices, from televisions and computers to smartphones and cars. It also caters to industrial applications and offers additional services like janitorial services and intellectual property management.
The consumer electronics segment boosted the company’s growth in Q4 2024 with a 15% sequential revenue increase. The total revenue reached KRW 7832.9 billion which was driven by an expansion in smartphone panel shipments. This is attributed to the increasing demand for smartphone panels, particularly those featuring OLED technology. The proportion of OLED products in total sales expanded by 7% to reach 60% in the fourth quarter.
It plans to diversify its range of smartphone models to cater to different market segments. However, LG Display (NYSE:LPL) expects to see a mid-single-digit decline in area shipment in Q1 2025 due to seasonality in TV panel shipments. But by producing more panels and a greater variety of smartphone screens, the company expects strong performance compared to a typical first quarter.
Overall, LPL ranks 10th on our list of best consumer electronics stocks to invest in now. As we acknowledge the growth potential of LPL, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
