UNIVERSAL DISPLAY CORP (NASDAQ:OLED) - A Strong Contender in Affordable Growth Stocks

UNIVERSAL DISPLAY CORP (NASDAQ:OLED) stands out as an affordable growth stock based on our screening criteria. The company combines solid growth prospects with reasonable valuation metrics, while maintaining strong financial health and profitability.

Growth Prospects

• Revenue Growth: OLED reported a 33.16% year-over-year revenue increase, well above industry averages.
• Earnings Outlook: Analysts expect earnings per share (EPS) to grow by 20.56% annually in the coming years.
• Accelerating Momentum: Both revenue and earnings growth rates are projected to improve compared to historical trends.

Valuation Considerations

• P/E Ratio: At 31.58, OLED trades at a premium to the S&P 500 average (27.29), but remains cheaper than 63.64% of its semiconductor peers.
• Forward P/E: The forward P/E of 26.18 is below the S&P 500 average (36.06), suggesting better value ahead.
• Enterprise Value/EBITDA: OLED’s ratio indicates a cheaper valuation than 72.73% of industry competitors.

Financial Health & Profitability

• Strong Balance Sheet: OLED carries no debt, with a current ratio of 9.00 and quick ratio of 7.26, reflecting ample liquidity.
• High Margins: The company maintains a 76.81% gross margin and 37.90% operating margin, outperforming over 96% of peers.
• Return Metrics: OLED’s return on invested capital (14.48%) and return on equity (17.23%) rank in the top tiers of its sector.

For a deeper look at the company’s fundamentals, review the full analysis report for UNIVERSAL DISPLAY CORP.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.