Universal Display Corporation (OLED), Corning Incorporated (GLW): Profiting From the Booming Smart Devices Industry

Unlike Universal Display,
Corning Incorporated (NYSE:GLW)

has been consistently growing at an impressive growth rate. Its shares have appreciated by nearly 20% year-to-date, and analysts estimate its annual EPS to grow by 12% over the next 5 years. In fact, Oppenheimer recently upgraded to outperform rating, with a price target of $18 per share (a 31% premium).

This is because Corning Incorporated (NYSE:GLW) has a long list of clients, and deploys its Gorilla glass in a wide range of devices. Apart from the growth in smartpone and tablet industry, the company stands to benefit from the growth of ultrabook industry. According to estimates, the demand for touch sensitive ultrabooks is expected to double in 2014. These ultrabooks require gorilla glass to prevent needless scratches, which have opened up a new growth avenue for Corning Incorporated (NYSE:GLW).

Besides that, Corning Incorporated (NYSE:GLW) recently unveiled its higher resolution Lotus XT Glass. According to the company, the new protective glass offers one of the highest PPI, with minimal yield loss in the industry. These displays are meant for high resolution displays including OLEDs and optimized LCDs, and offer minimal loss of color vibrance. Naturally, gamers and imaging related professionals will now feel compelled to buy IPS displays equipped with Lotus glass.

Final words

In my opinion, Universal Display Corporation (NASDAQ:OLED) is a value play here, as the street has neglected its growth potential. The company just announced a breakthrough in its PHOLED technology, which could power up its shares again. On the other hand, Corning Incorporated (NYSE:GLW) just developed Lotus Glass, which could further propel its growth rate in the short-medium term.

Since both of these companies operate in the rapidly growing smartphone and tablet industries, they have tremendous growth potential to capitalize on. Hence, I believe that initiating long positions in Corning Incorporated (NYSE:GLW) and Universal Display, is a great way to enjoy the booming industry of smart devices.

Piyush Arora has no position in any stocks mentioned. The Motley Fool recommends Corning and Universal Display . The Motley Fool owns shares of Corning and Universal Display . Piyush is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Profiting From the Booming Smart Devices Industry originally appeared on Fool.com is written by Piyush Arora.

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