Are Cagey Traders Interested in Universal Display Corporation (NASDAQ:OLED)?

Savvy investors are constantly on the lookout when it comes to picking stocks at bargain prices. As of late, investors have been taking notice of Universal Display Corporation (NASDAQ:OLED) shares. During recent trading, shares saw a move of 0.78% hitting a price of $156.99.

Once the individual investor has figured out a plan to analyze stocks, they can begin to start building a portfolio. Because not everyone has the same goals, time horizons, and risk appetites, it is hard to provide one answer to the question of how to construct the perfect winning stock portfolio. Although every investor’s goal is typically to beat the market and secure consistent profits, this is no easy accomplishment. Professionals have spent many years studying the ins and outs of the stock market. There are certain strategies that may work better during different market cycles, but it is hard to say with any certainty that they will continue to work in the future. Markets and economic landscapes are constantly changing, and being able to keep up with the changes might involve tweaking strategies that have previously been successful but no longer are.

One of the most basic ideas that goes along with the stock market is buy low and sell high. Although this advice is overly obvious, many new investors will do the exact opposite when trading stocks. Inexperienced investors have the tendency to buy stocks that have been performing the best recently. This may be caused by certain factors such as not looking into the underlying fundamentals or just hoping that the stock will continue to rise. Rookie investors may also make the error of holding onto shares that continue to drop in value. Instead of cutting the loser loose, they hold off with the hope that eventually the stock will at least get back to the breakeven point. 

The average investor might not have the time to monitor every single tick of a given stock, but taking a look at historical performance may help provide some valuable insight on where the stock may be trending in the future. Over the past week, Universal Display Corporation (NASDAQ:OLED) has performed 3.48%. For the past month, shares are 37.95%. Over the last quarter, shares have performed 63.44%. Looking back further, Universal Display Corporation stock has been 22.08% over the last six months, and 66.47% since the start of the calendar year. For the past full year, shares are 21.32%.

Price Earnings Ratio

The price/earnings ratio (P/E) for Universal Display Corporation is 128.10 and the forward P/E ratio stands at 41.51. The price to sales growth is 29.78. The price/earnings ratio (P/E) is a market prospect ratio which calculates the value of a stock relative to its earnings. On other words, the P/E ratio is and indicator of what investors are will to pay for a stock relative to its earnings.  A firm with a high P/E ratio typically indicates that investors are willing to pay a premium for the stock and higher performance in future quarters would be anticipated. Going a step further we can also look at the PEG ratio of a company.  A stock’s price/earnings ratio divided by its year-over-year earnings growth rate. In general, the lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth.

There is rarely any substitute for diligent research, especially when it pertains to the equity markets. No matter what strategy an investor employs, keeping abreast of current market happenings is of the utmost importance. Everyone wants to see their stock picks soar, but the stark reality is that during a market wide sell-off, this may not be the case. Recently, shares of Universal Display Corporation (NASDAQ:OLED) have been seen trading 47.40% away from the 200-day moving average and 35.95% off the 50-day moving average. The stock is currently trading 0.06% away from the 52-week high and separated 99.35% from the 52-week low. Universal Display Corporation’s RSI is presently sitting at 82.02.

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