Trade-Ideas: Universal Display (OLED) Is Today's

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 ( 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 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 $33.3 million.
  • OLED has traded 91,533 shares today.
  • OLED is up 3.1% today.
  • OLED was down 7.2% yesterday.

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More details on OLED:

Universal Display Corporation is engaged 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 19.9. Currently there are 4 analysts that rate Universal Display a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Universal Display has been 614,400 shares per day over the past 30 days. Universal Display has a market cap of $1.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.21 and a short float of 30% with 9.10 days to cover. Shares are up 1% 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 as a buy. 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, notable return on equity, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 29.9%. 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 12.10, which clearly demonstrates the ability to cover short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, UNIVERSAL DISPLAY CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • 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 32.8% when compared to the same quarter one year prior, rising from $15.38 million to $20.42 million.
  • Net operating cash flow has increased to $32.33 million or 22.30% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.62%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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