The origin of ferromagnetic insulating state of La$_{7/8}$Sr$_{1/8}$MnO$_3$ is investigated. Based on the tight-binding model, it is shown that this state can be attributed to the Peierls instability arisen from the interplay of spin and orbital ordering. The importance of the hole-orbiton-phonon intercoupling in doped manganites is revealed. This picture explains well the recent experimental finding of the reentrance of ferromagnetic metal state at low temperature [Phys. Rev. Lett. 96, 097201 (2006)].
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