Thursday, June 4, 2015

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.

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