Why Universal Display Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, organic light-emitting diode manufacturer Universal Display (NASDAQ: OLED  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Universal Display and see what CAPS investors are saying about the stock right now.

Universal Display facts

Headquarters (founded)

Ewing, N.J. (1985)

Market Cap

$1.4 billion

Industry

Electronic components

Trailing-12-Month Revenue

$83.2 million

Management

CEO Steven Abramson (since 2008)

CFO Sidney Rosenblatt (since 1995)

Return on Equity (average, past 3 years)

(9.9%)

Cash/Debt

$243.9 million / $0

Competitors

BASF

Eastman Kodak

Sumitomo Chemical

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 1,295 members who have rated Universal Display believe the stock will outperform the S&P 500 going forward.

Just yesterday, fellow Fool Simon Erickson (TMFInnovator) summed up the Universal Display bull case for our community:

Over 1000 issued and pending patents on OLED technology. They have the know-how in this fast-growing industry. OLEDs shine brighter and are more energy efficient than current lighting technology. They're a better mousetrap.

- HUGE opportunity if OLED's catch on in televisions. DisplaySearch research estimates the OLED TV market to reach $16 billion of revenue by 2020.

- Extremely high profit margins, and revenues have doubled in each of the past two years.

Smartphone displays for Samsung have given them a good foothold and reputation in the industry. Adoption of OLED TV's will no-doubt be the long-term driver of growth. And the wildcard is if Apple adopts OLEDs for the iPod. ... That development would blow the roof off.

Many are impatient with the long-term story, as OLEDs always seem to be "around the corner". But I like the risk/reward trade-off.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Universal Display may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 23, 2013, at 11:42 AM, sidneyleejohnson wrote:

    I think I would replace Eastman Kodak with Merck or add Merck as a competitor. After that change you have pretty much summarized the major players in court with UDC at the European Patent Office (EPO).

Add your comment.

DocumentId: 2380005, ~/Articles/ArticleHandler.aspx, 7/30/2014 9:53:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement