The Coronavirus Selloff Turned Universal Display Into a Growth Stock at a Value Price
Despite mounting macroeconomic negativity working against positive progress, OLED display patent holder and raw material seller Universal Display (NASDAQ: OLED) had a solid showing in the first quarter of 2020. For now, manufacturing supply chains remain in good order and new screens are still being built, leading to another double-digit, year-over-year period of revenue and profit growth. However, question marks abound because of the coronavirus and the economic lockdowns around the globe put in place to try and halt the spread. Universal Display didn't provide any full-year guidance as a result.
Because of this near-term uncertainty, shares of the manufacturing supplier are down some 30% this year from all-time highs (and were down about 50% during the worst of the market meltdown in March). Some near-term breakdown in financial upside has thus been priced in. For longtime owners of the stock, though, this is territory revisited and is par for the course for a cyclical manufacturing-dependent business model. Based on the eventual potential for the OLED market, Universal Display is now a growth-at-a-relative-value play.
Can't stand those big bevels on the side of your TV? Universal Display's OLED tech is the solution for you. Image source: Getty Images.
Source Fool.com
