LB Group Co., Ltd. Stock Forum

Market overconfidence in LB Group is evident in the 14% share price drop, steeper than the EPS slip. Despite short-term issues, shareholders should monitor fundamentals. Also, 3 warning signs for LB Group warrant investor attention.

LB Group is still a bargain according to the price multiple model. Higher cash flow is expected for LB Group, which should increase share valuation. The current share price has not fully factored in the optimistic profit outlook. Other factors like capital structure could explain the current price multiple.

Despite LB Group's strong growth forecast, its low P/E ratio shows investors doubt its ability to meet these expectations. The ratio's stasis could reflect unseen threats to earnings and anticipation of earnings instability keeps the share price low.

Investor reluctance to buy LB Group shares due to a drop in EPS. If stock price reduction is attributed to changing sentiments rather than business conditions, it might present an investing opportunity.

LB Group shows long-term potential with growth investments and revenue rise. Despite lower returns, the firm's five-year stock surge of 71% illustrates investor optimism.

The report suggests it's a good time to increase holdings in LB Group considering its profit outlook hasn't been fully reflected in its share price. However, potential investors are advised to make informed assessments by considering factors like the track record of its management team.