Wipro and LG Display: Value Penny Stocks Hedge Funds Are Buying

Savita Subramanian, Bank of America's head of US equity strategy, told CNBC on July 2 that the market is healthy and that corporate earnings are tracking toward 20% growth this year, up from an initial 15% forecast. She recommended cyclical sectors – industrials, energy, materials – as the area of the market that remains undervalued relative to GDP-sensitive companies. Machinery, engineering, construction, oil, and metals could perform over the next 12 months, she said.

That macro call puts a spotlight on stocks that trade cheaply and have real catalysts. Two names hedge funds have been buying fit that frame: LG Display and Wipro.

LG Display (LPL)

LG Display trades around $4.50 with a forward P/E under 10. On June 1, the company earned Automotive SPICE Capability Level 2 certification for its instrument clusters and center fascia displays. That is an international standard for software development processes in automotive suppliers. As cars shift toward software-defined vehicles, displays are becoming advanced platforms rather than simple output devices. LG Display already holds ISO/SAE 21434 cybersecurity certification. The company plans to use the new milestone to expand in North America and deepen partnerships with automakers.

The certification is not a revenue event by itself. It removes a barrier. Automakers require ASPICE Level 2 from display suppliers for new programs. LG Display now qualifies for contracts it could not bid on before. The automotive display market is growing at roughly 8% annually, driven by larger screens and more units per vehicle. LG Display's OLED technology gives it a margin advantage over LCD-only competitors in premium segments.

Wipro (WIT)

Wipro trades near $5 with a forward P/E of about 14. On June 18, the company completed a multi-year data center migration for METRO AG, moving the German wholesaler's legacy IT to a multi-cloud ecosystem. The project, which began in 2020 and was extended in 2025, now supports METRO's cloud-first strategy and its ambition to become an AI-first company. Wipro integrated its own intelligence platform into user lifecycle management and software development, adding automation and cybersecurity.

This is a reference-able win. METRO is a large European enterprise with complex IT needs. The migration shows Wipro can execute multi-year, multi-cloud transformations – the kind of work that drives higher-margin consulting revenue, not just low-margin BPO. Wipro has been restructuring its business toward exactly these larger, longer-duration deals. The METRO completion gives sales teams a case study to pitch similar clients.

Both stocks sit in sectors Subramanian flagged as undervalued. LG Display is a cyclical industrial play tied to auto production and display demand. Wipro is a technology services play tied to enterprise cloud migration and AI adoption. Both trade below 15x forward earnings, both have recent catalysts that are concrete rather than aspirational, and both appear in hedge fund 13F filings from Q1.

The better read

The simple read is that these are cheap stocks with news. The better read is that both companies are removing structural constraints on revenue growth. LG Display's certification opens a new addressable market in automotive software-defined displays. Wipro's METRO completion proves it can win and deliver the kind of integrated cloud-and-AI deal that competitors like Infosys and TCS have dominated. The next catalyst for LG Display is its Q2 earnings, due in late July, which will show whether automotive display revenue is accelerating. For Wipro, the next marker is its Q1 FY26 earnings, expected in mid-July, where management will likely discuss the METRO win and the pipeline of similar deals.

What would confirm the setup

For LG Display, automotive display revenue growing faster than the overall display market, plus one or two new program wins announced with named automakers. For Wipro, a deal pipeline that shows more multi-year, multi-cloud migrations in Europe and North America, and consulting revenue as a rising share of total revenue.

What would break it

For LG Display, a broader auto production slowdown that delays new programs. For Wipro, a quarter where deal wins are smaller or shorter-duration than the METRO contract, signaling the company cannot repeat the model.

Both stocks are cheap for a reason. LG Display has been volatile on LCD pricing cycles. Wipro has underperformed peers on growth. The recent catalysts address those specific weaknesses. Whether they work depends on execution in the next two quarters.

AlphaScala rates BAC at 65/100 (Moderate) and WIT at 46/100 (Mixed).

Disclosure: This article is for informational purposes only and does not constitute investment advice.