Universal Display (OLED) Is Today's Strong On High 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 $32.3 million.
- OLED has traded 56,329 shares today.
- OLED is trading at 2.57 times the normal volume for the stock at this time of day.
- OLED is trading at a new high 3.05% 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 168. Currently there are 2 analysts that rate Universal Display a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Universal Display has been 657,200 shares per day over the past 30 days. Universal Display has a market cap of $2.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.64 and a short float of 8.2% with 5.69 days to cover. Shares are down 2% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Universal Display as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and weak operating cash flow.
Highlights from the ratings report include:
- 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 48.3% when compared to the same quarter one year prior, rising from $1.31 million to $1.95 million.
- 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 15.92, which clearly demonstrates the ability to cover short-term cash needs.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, UNIVERSAL DISPLAY CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Universal Display Ratings Report.
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