5. Universal Display Corporation (NASDAQ:OLED)
TTM Net Income: $222.68 Million
5-Year Net Income CAGR: 13.74%
Market Capitalization: $9.66 Billion
Number of Hedge Fund Holders: 27
Universal Display Corporation (NASDAQ:OLED) is a leading company in the development and commercialization of organic light-emitting diode (OLED) technologies and materials. OLED technology is essential for creating energy-efficient displays and solid-state lighting. The company’s proprietary UniversalPHOLED technology and materials enable manufacturers to produce high-quality OLEDs used in a wide range of products, including smartphones, TVs, and smartwatches. The company partners with major consumer electronics brands like Samsung and LG, helping to drive innovation in display and lighting technologies.
The company is strategically advancing its position in the OLED market by capitalizing on the growing adoption of OLED technology across various consumer devices. The company reported a significant uptick in the OLED IT market, with major original equipment manufacturers (OEMs) like Apple and Microsoft launching their first OLED tablets. This trend is expected to drive OLED tablet panel shipments to triple year-over-year, reaching 14.8 million units in 2024. Additionally, Universal Display Corporation (NASDAQ:OLED) is focused on enhancing its phosphorescent materials portfolio, with ongoing development of blue emissive materials that promise higher efficiency and performance for OLED applications.
The company’s recent innovations, such as the organic vapor jet printed (OVJP) technology, highlight its commitment to cost-effective manufacturing of high-resolution OLED panels. As demand for energy-efficient solutions continues to rise, Universal Display Corporation’s (NASDAQ:OLED) advancements in OLED technology position it well for sustained growth in the rapidly expanding market.
In the second quarter of 2024, Universal Display Corporation (NASDAQ:OLED) reported revenue of $159 million, an 8% increase year-over-year. Material sales contributed significantly to this growth, reaching $95.4 million compared to $77.1 million in Q2 2023, driven by strong demand for emitter materials. The company’s net income also rose to $52.3 million, or $1.10 per diluted share, up from $49.7 million, or $1.04 per diluted share, in Q2 2023. The company ended the quarter with approximately $879 million in cash and investments, showcasing its strong financial position.
In the Q2 2024 earnings call, management shared that the company’s Board of Directors declared a quarterly dividend of $0.40. This decision reflects the company’s ongoing commitment to returning capital to shareholders while maintaining positive cash flow generation. Overall, these results highlight Universal Display Corporation’s (NASDAQ:OLED) solid performance and its strategic focus on meeting growing market demands in the OLED industry.
As of the second quarter of 2024, Universal Display Corporation (NASDAQ:OLED) was held by 27 hedge funds, according to Insider Monkey’s database. OLED ranks among the top 5 on our list of the 7 most profitable mid-cap stocks to invest in.
Universal Display Corporation (NASDAQ:OLED) has achieved impressive growth over the last 5 years, with its revenue increasing at an average rate of 12% each year. Meanwhile, the company’s net income has also risen, growing at an average rate of 13.74% during the same period.
TimesSquare Capital Management stated the following regarding Universal Display Corporation (NASDAQ:OLED) in its fourth quarter 2023 investor letter:
“New to the portfolio this quarter is Universal Display Corporation (NASDAQ:OLED), a developer of organic light emitting diode technologies for use in display and solid-state lighting applications. The company stands to benefit from a recovery in the end-markets it serves including smartphones, televisions, notebooks, and tablets.”
