Our Top Stock Idea
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|Company||Universal Display (NAS: PANL)|
|Stock Price at Underperform Recommendation:||$37.44|
Universal Display Profile
|Star Rating (out of 5)||****|
|Market Cap||$1.9 billion|
Sources: S&P Capital IQ, Yahoo! Finance, and Motley Fool CAPS.
Analyst opinions of how Apple's (NAS: AAPL) court/patent win against Samsung will affect Universal Display Corp are mixed. Those who feel it will have [a negative impact] are generally concerned with [the] short term as Samsung and other Android users delay product announcements while they "innovate" around the patents. Overall, the 12% drop in Universal Display Corp when I entered my upthumb seemed excessive, but it is difficult to know how investors, who are typically short sighted and who in particular do not like "uncertainty," will respond. Universal Display Corp has "rebounded" about 5% since I made this call. I probably would hold at this point, or be tentative, while things settle from both a real life and a CAPS play. Typical patterns, (although the markets strive to not be typical), would be another selldown a few percent.
Overall, Universal Display has shown consistent growth and while I'm not a fan of relying too much on forward P/E and potential in this uncertain market, Universal Display has the characteristics that long term it will weather this and mature further. The cellphone market with its frequent phone "turnover" will continue. Sells in third party countries, patent infringement or not, will continue to be the growth engine.
The article Our Top Stock Idea originally appeared on Fool.com.The Motley Fool is investors writing for investors.Dan Dzombakhad no position in any of the companies mentioned in this article. Pitches must be compelling, made in the past 30 days, and be at least 400 words.The Motley Fool owns shares of Apple and Universal Display.Motley Fool newsletter serviceshave recommended buying shares of Universal Display and Apple and creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.