Universal Display Corp. (OLED) closed the most recent trading day at $203.96, moving +0.13% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.34%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.43%.
Heading into today, shares of the organic light-emitting diode technology company had gained 17.43% over the past month, outpacing the Computer and Technology sector's gain of 6.28% and the S&P 500's gain of 4.46% in that time.
Wall Street will be looking for positivity from OLED as it approaches its next earnings report date. This is expected to be August 1, 2019. The company is expected to report EPS of $0.46, up 100% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $76.91 million, up 36.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.44 per share and revenue of $357.92 million, which would represent changes of +96.77% and +44.66%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for OLED. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. OLED is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, OLED is currently trading at a Forward P/E ratio of 83.4. For comparison, its industry has an average Forward P/E of 17.63, which means OLED is trading at a premium to the group.
We can also see that OLED currently has a PEG ratio of 2.78. 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. Electronics - Miscellaneous Components stocks are, on average, holding a PEG ratio of 1.64 based on yesterday's closing prices.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 43% 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.
To follow OLED in the coming trading sessions, be sure to utilize Zacks.com.
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