NASDAQ:OLED qualifies as a high growth stock and is consolidating.

In this article, we'll take a closer look at UNIVERSAL DISPLAY CORP (NASDAQ:OLED) as a potential candidate for growth investing. While it's important for investors to conduct their own research, UNIVERSAL DISPLAY CORP has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Evaluating Growth: NASDAQ:OLED

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:OLED has earned a 8 for growth:

• The Earnings Per Share has grown by an nice 15.55% over the past year.
• Measured over the past years, OLED shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.88% on average per year.
• OLED shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.77%.
• The Revenue has been growing by 18.43% on average over the past years. This is quite good.
• Based on estimates for the next years, OLED will show a very strong growth in Earnings Per Share. The EPS will grow by 20.82% on average per year.
• The Revenue is expected to grow by 17.44% on average over the next years. This is quite good.

How do we evaluate the Health for NASDAQ:OLED?

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:OLED was assigned a score of 9 for health:

• OLED has an Altman-Z score of 22.73. This indicates that OLED is financially healthy and has little risk of bankruptcy at the moment.
• OLED has a Altman-Z score of 22.73. This is amongst the best in the industry. OLED outperforms 90.74% of its industry peers.
• There is no outstanding debt for OLED. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• OLED has a Current Ratio of 7.18. This indicates that OLED is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 7.18, OLED belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
• OLED has a Quick Ratio of 5.84. This indicates that OLED is financially healthy and has no problem in meeting its short term obligations.
• OLED has a better Quick ratio (5.84) than 89.81% of its industry peers.

Profitability Analysis for NASDAQ:OLED

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:OLED has earned a 9 out of 10:

• OLED's Return On Assets of 16.23% is amongst the best of the industry. OLED outperforms 87.96% of its industry peers.
• OLED has a Return On Equity of 18.53%. This is amongst the best in the industry. OLED outperforms 82.41% of its industry peers.
• OLED has a Return On Invested Capital of 15.05%. This is amongst the best in the industry. OLED outperforms 87.04% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for OLED is above the industry average of 11.23%.
• The 3 year average ROIC (13.67%) for OLED is below the current ROIC(15.05%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 36.34%, OLED belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
• OLED's Profit Margin has improved in the last couple of years.
• OLED's Operating Margin of 38.81% is amongst the best of the industry. OLED outperforms 96.30% of its industry peers.
• In the last couple of years the Operating Margin of OLED has grown nicely.
• OLED's Gross Margin of 76.77% is amongst the best of the industry. OLED outperforms 95.37% of its industry peers.

How does the Setup look for NASDAQ:OLED

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:OLED currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

OLED has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 160.49, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of OLED contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of OLED

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.