UNIVERSAL DISPLAY CORP (NASDAQ:OLED)—A High-Growth Stock Gearing Up for Its Next Upward Move.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if UNIVERSAL DISPLAY CORP (NASDAQ:OLED) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted UNIVERSAL DISPLAY CORP showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Evaluating Growth: OLED

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. OLED has received a 8 out of 10:

• The Earnings Per Share has grown by an nice 9.67% over the past year.
• Measured over the past years, OLED shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.75% on average per year.
• Looking at the last year, OLED shows a very strong growth in Revenue. The Revenue has grown by 41.01%.
• Measured over the past years, OLED shows a quite strong growth in Revenue. The Revenue has been growing by 9.83% on average per year.
• OLED is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.56% yearly.
• The Revenue is expected to grow by 17.10% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Assessing Health Metrics for OLED

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. OLED has earned a 9 out of 10:

• An Altman-Z score of 21.72 indicates that OLED is not in any danger for bankruptcy at the moment.
• OLED has a Altman-Z score of 21.72. This is amongst the best in the industry. OLED outperforms 90.74% of its industry peers.
• There is no outstanding debt for OLED. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 7.18 indicates that OLED has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 7.18, OLED belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
• A Quick Ratio of 5.72 indicates that OLED has no problem at all paying its short term obligations.
• OLED has a Quick ratio of 5.72. This is amongst the best in the industry. OLED outperforms 89.81% of its industry peers.

Profitability Assessment of OLED

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. OLED has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 15.18%, OLED belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
• The Return On Equity of OLED (17.21%) is better than 80.56% of its industry peers.
• The Return On Invested Capital of OLED (14.53%) is better than 87.04% of its industry peers.
• The 3 year average ROIC (12.91%) for OLED is below the current ROIC(14.53%), indicating increased profibility in the last year.
• OLED's Profit Margin of 34.22% is amongst the best of the industry. OLED outperforms 94.44% of its industry peers.
• OLED has a Operating Margin of 37.11%. This is amongst the best in the industry. OLED outperforms 96.30% of its industry peers.
• OLED has a Gross Margin of 76.74%. This is amongst the best in the industry. OLED outperforms 95.37% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. OLED currently has a 8 as setup rating:

Although the technical rating is bad, OLED does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 146.20, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of OLED contains the most current fundamental analsysis.

Check the latest full technical report of OLED for a complete technical analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.