Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Universal Display Corporation ( OLED) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Universal Display Corporation 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 $34.2 million.
- OLED has traded 39,160 shares today.
- OLED is up 4.5% today.
- OLED was down 6.5% yesterday.
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 display, solid-state lighting, and other product applications. OLED has a PE ratio of 75.5. Currently there are 6 analysts that rate Universal Display Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold. The average volume for Universal Display Corporation has been 744,400 shares per day over the past 30 days. Universal Display has a market cap of $1.6 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 0.49 and a short float of 29.9% with 8.17 days to cover. Shares are unchanged year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Universal Display Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. Highlights from the ratings report include:
- OLED's very impressive revenue growth greatly exceeded the industry average of 0.1%. Since the same quarter one year prior, revenues leaped by 162.5%. Growth in the company's revenue appears to have helped boost 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 12.43, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 56.99% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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 Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.