Universal Display Corp. (OLED) Gains But Lags Market: What You Should Know
In the latest trading session, Universal Display Corp. (OLED) closed at $190.61, marking a +0.31% move from the previous day. This move lagged the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.75%.
Heading into today, shares of the organic light-emitting diode technology company had gained 26.13% over the past month, outpacing the Computer and Technology sector's gain of 8.17% and the S&P 500's gain of 8.19% in that time.
Investors will be hoping for strength from OLED as it approaches its next earnings release. On that day, OLED is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $76.91 million, up 36.97% from the year-ago period.
OLED's full-year Zacks Consensus Estimates are calling for earnings of $2.44 per share and revenue of $357.92 million. These results would represent year-over-year changes of +96.77% and +44.66%, respectively.
Investors might also notice recent changes to analyst estimates for OLED. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. OLED is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that OLED has a Forward P/E ratio of 77.8 right now. For comparison, its industry has an average Forward P/E of 17.86, which means OLED is trading at a premium to the group.
We can also see that OLED currently has a PEG ratio of 2.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Components industry currently had an average PEG ratio of 1.69 as of yesterday's close.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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