Universal Display Could Be a Hot Stock This Holiday Shopping Season
2020 has been a wild ride for Universal Display (NASDAQ: OLED). Shares have yet to reclaim all-time highs after getting halved in value back in March, but after a rebound in sales during Q3 they're well on their way. OLED displays continue to pick up momentum even during the pandemic, and could build some serious steam during the all-important holiday shopping season. A confluence of events bodes well for this screen technologist, and shares look like a reasonable value.
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After a disastrous Q2 2020 in which year-over-year sales fell by half and profits dwindled to almost zero, Universal Display (UDC) came roaring back in the summer as economic lockdowns eased around the globe. Revenue increased 20% in Q3 from a year ago to $117 million, driven almost entirely by higher sales of materials used in the manufacture of OLED screens. Slightly higher expenses, higher taxes, and less interest income compared to the same period in 2019 led to a less dramatic 9.5% increase in net income to $40.5 million.
Source Fool.com