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NEW YORK (TheStreet) -- Shares of Universal Display Corp. (OLED) - Get Universal Display Corporation Report are jumping 7.18% to $56.12 early Wednesday afternoon after a report said Apple (AAPL) would begin using organic light emitting diode (OLED) screens in its iPhones.

The Trenton, NJ-based company researches, develops and commercializes OLED technologies and materials for displays of wearables, smartphones, tablets, televisions and solid-state lighting applications.

LG Display Co. (LPL) and Samsung Electronics Co.'s (SSNLF) panel-making unit are said to be close to finalizing a deal with Apple to begin supplying OLED screens for iPhones, the Electronic Times reports.

Both South Korean companies are customers of Universal Display, Investor's Business Daily noted.

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Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate UNIVERSAL DISPLAY CORP as a Buy with a ratings score of B-. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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 analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 2.0%. 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 -6.36%.
  • Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 88.53% 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.
  • You can view the full analysis from the report here: OLED