What happened

Universal Display (OLED -1.42%) shares beat the market in October as the stock gained 19% compared to a 2% increase in the S&P 500, according to S&P Global Market Intelligence. The rally reversed losses in the prior month to keep the tech stock well ahead of the broader market, up over 100% so far in 2019.

A couple shops for a new television.

Image source: Getty Images.

So what

October's rally was powered by surprisingly strong operating results from the glass display specialist. Management revealed on Oct. 30 that robust demand trends are pushing revenue and profitability higher, so much so that Universal Display raised its 2019 outlook on both the top and bottom lines.

Now what

The company is benefiting from a surge in demand across many areas of consumer electronics, including televisions and smartphones. CFO Sid Rosenblatt told investors that the installed base of advanced OLED screens could rise by as much as 50% by late 2021, in fact. That healthy industry outlook, combined with Universal Display's strong market position and slimming cost infrastructure, mean that shareholders might see increasing earnings strength through at least the next few fiscal years.