Trade-Ideas: Universal Display (OLED) Is Today's Strong On High Relative Volume Stock
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Universal Display as such a stock due to the following factors:
- OLED has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.6 million.
- OLED has traded 250,119 shares today.
- OLED is trading at 9.51 times the normal volume for the stock at this time of day.
- OLED is trading at a new high 4.02% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on OLED:
Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel displays and solid-state lighting applications. OLED has a PE ratio of 186. Currently there are 3 analysts that rate Universal Display a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Universal Display has been 475,100 shares per day over the past 30 days. Universal Display has a market cap of $1.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.57 and a short float of 13.6% with 5.63 days to cover. Shares are up 56.8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Universal Display as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.3%. Since the same quarter one year prior, revenues rose by 19.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- OLED has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 8.81, which clearly demonstrates the ability to cover short-term cash needs.
- UNIVERSAL DISPLAY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNIVERSAL DISPLAY CORP reported lower earnings of $0.90 versus $1.59 in the prior year. This year, the market expects an improvement in earnings ($1.11 versus $0.90).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market on the basis of return on equity, UNIVERSAL DISPLAY CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Universal Display Ratings Report.
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