Exploring the Growth Potential of NASDAQ:OLED as It Nears a Breakout.

Last update: Jan 6, 2025

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether UNIVERSAL DISPLAY CORP (NASDAQ:OLED) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but UNIVERSAL DISPLAY CORP has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Growth Insights: NASDAQ:OLED

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:OLED has achieved a 8 out of 10:

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.
The Revenue has grown by 37.77% in the past year. This is a very strong growth!
OLED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.43% yearly.
OLED is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.82% yearly.
The Revenue is expected to grow by 17.44% on average over the next years. This is quite good.

How We Gauge Health for NASDAQ:OLED

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:OLED scores a 9 out of 10:

An Altman-Z score of 21.51 indicates that OLED is not in any danger for bankruptcy at the moment.
OLED's Altman-Z score of 21.51 is amongst the best of the industry. OLED outperforms 88.78% 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.
Looking at the Current ratio, with a value of 7.18, OLED belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
A Quick Ratio of 5.84 indicates that OLED has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.84, OLED belongs to the top of the industry, outperforming 89.72% of the companies in the same industry.

Evaluating Profitability: NASDAQ:OLED

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

With an excellent Return On Assets value of 16.23%, OLED belongs to the best of the industry, outperforming 87.85% of the companies in the same industry.
The Return On Equity of OLED (18.53%) is better than 82.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.05%, OLED belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OLED is above the industry average of 11.13%.
The last Return On Invested Capital (15.05%) for OLED is above the 3 year average (13.67%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 36.34%, OLED belongs to the top of the industry, outperforming 95.33% of the companies in the same industry.
In the last couple of years the Profit Margin of OLED has grown nicely.
The Operating Margin of OLED (38.81%) is better than 96.26% 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 95.33% of its industry peers.

How does the Setup look for NASDAQ:OLED

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:OLED currently has a 8 as setup rating:

OLED has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 151.53. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 150.04, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for OLED in the last couple of days, which is a good sign.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.