Universal Display (OLED) Is Today's Strong On High Volume Stock - TheStreet

Trade-Ideas LLC identified

Universal Display

(

OLED

) 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 $50.2 million.
  • OLED has traded 489,737 shares today.
  • OLED is trading at 6.67 times the normal volume for the stock at this time of day.
  • OLED is trading at a new high 5.00% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in OLED with the Ticky from Trade-Ideas. See the FREE profile for OLED NOW at Trade-Ideas

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 236. 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 532,900 shares per day over the past 30 days. Universal Display has a market cap of $2.4 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 3.92 days to cover. Shares are up 87.2% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Universal Display as a

buy

. 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, good cash flow from operations, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 1.0%. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 64.5% when compared to the same quarter one year prior, rising from $4.29 million to $7.05 million.
  • Net operating cash flow has significantly increased by 187.35% to $5.44 million when compared to the same quarter last year. In addition, UNIVERSAL DISPLAY CORP has also vastly surpassed the industry average cash flow growth rate of 0.12%.
  • Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 74.31% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.