Universal Display Corp. (OLED) closed the most recent trading day at $181.73, moving -0.72% from the previous trading session. This move lagged the S&P 500's daily loss of 0.49%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.8%.
Coming into today, shares of the organic light-emitting diode technology company had lost 13.51% in the past month. In that same time, the Computer and Technology sector gained 3.08%, while the S&P 500 gained 3%.
OLED will be looking to display strength as it nears its next earnings release. In that report, analysts expect OLED to post earnings of $0.57 per share. This would mark year-over-year growth of 18.75%. Our most recent consensus estimate is calling for quarterly revenue of $84.73 million, up 9.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.68 per share and revenue of $381.11 million. These totals would mark changes of +116.13% and +54.04%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for OLED. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. OLED is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that OLED has a Forward P/E ratio of 68.24 right now. For comparison, its industry has an average Forward P/E of 19.36, which means OLED is trading at a premium to the group.
It is also worth noting that OLED currently has a PEG ratio of 2.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Miscellaneous Components was holding an average PEG ratio of 1.81 at yesterday's closing price.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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