- By Holly LaFon

Samsung (

005930.KS

)'s stock delivered solid results in the quarter,lion on a cheese grater in large part due to significantly-improving profit trends in the company's semiconductor and display businesses. Due to strong product cycles and tight product supplies, we think these businesses could produce earnings that nearly double in 2017.

In recent months, South Korea has experienced significant political unrest, culminating in the arrest of impeached President Park Guen-Hye at quarter end. We believe the changing political landscape will bring about improved corporate behavior, which could allow Samsung's shares to trade more in line with global peers--and substantially higher than where they are today. Although tensions with North Korea have recently increased, Samsung is a powerful global business whose stock remains, in our view, attractive, due to its well-positioned businesses, low valuation and strong balance sheet.

Warning! GuruFocus has detected 5 Warning Signs with XKRX:005930. Click here to check it out.

XKRX:005930 15-Year Financial Data

The intrinsic value of XKRX:005930

Peter Lynch Chart of XKRX:005930

From

Yacktman Focused Fund

(

Trades

,

Portfolio

) first quarter 2017

shareholder letter

.

This article first appeared on

GuruFocus

.

Warning! GuruFocus has detected 5 Warning Signs with XKRX:005930. Click here to check it out.

XKRX:005930 15-Year Financial Data

The intrinsic value of XKRX:005930

Peter Lynch Chart of XKRX:005930

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