We’re in the midst of a massive tech upgrade cycle that’s virtually flying under the radar, even though it has the potential to affect nearly every home in America.
You see, it’s a move that will affect billions of smartphones, tablets, and laptops.
On top of that, this breakthrough will reach even further by affecting millions of television sets and electronic signs, not to mention your car’s infotainment screen that displays maps and other vital data.
And this will all be possible thanks to OLED, or organic light-emitting diode, technology, a breakthrough that will greatly improve the user experience. Right now, this technology is working its way through the global electronics supply chain.
In fact, LG Electronics recently debuted a transparent TV, the new state of the art in that field. That breakthrough would not be possible without OLED.
Today, I’m going to reveal the leading supplier in this $48 billion market and show you why its shares could double once again in less than three years…
Flexible Vision
Now then, LG is betting heavily on OLED technology. The firm recently displayed much of its 2021 lineup at the Consumer Electronics Show that was held virtually due to the pandemic.
In fact, LG’s website is chock full of marketing materials about this technology. The Korean giant notes that these organic diodes allow for sharper screens, faster action for gaming, and slimmer designs.
Its new “transparent” TV looks like a sheet of glass. Even with a movie or TV show playing, users can still see through much of the monitor.
Also, OLED goes way beyond home theater. You’ll find them in leading handsets from most of the major phone makers, and they are the technology of choice for the coming era of bendable or foldable electronics that we have discussed several times in the past.
That’s because the system relies on a series of thin, light-emitting films, making it far more compact than even the smallest of bulbs. This allows the OLED array to produce brighter light while using less energy than even today’s LEDs.
No wonder Universal Display Corp. (OLED) has been tearing up the stock market. It’s the clear leader in the field and has been for many years.
Indeed, the ticker symbol says it all. No other publicly traded firm has the breadth of products and the depth of the firm’s OLED intellectual property,
With that in mind, let’s run it through my five rules for finding market-crushing tech leaders. Take a look:
Tech Wealth Rule No. 1: Great Companies Have Great Operations.
These are well-run firms with top-notch leaders.
I’m not the only one who thinks the company has superior management. Newsweek recently listed Universal Display as 49th on its list of the 400 most responsible companies for 2021.
Not only that, but Fortune named the firm one of America’s 100 fastest growing companies. This marked the fourth time Universal Display has made this list of elite firms.
OLED also has plenty of barriers to entry. It boasts an amazing 5,000 global patents, a great barometer for the quality of its market leadership. It also means the company can run lean by licensing its technology to display makers.
Tech Wealth Rule No. 2: Separate the Signal from the Noise.
To create real wealth, you have to ignore the hype and find companies that have rock-solid fundamentals.
Let’s be clear. OLED sold off last year as part of the pandemic financial panic. But that would have been a terrific time to lay out a stake in this exciting winner.
Consider that from the market’s rebound last March 23 through the end of the year, OLED was up 106.5%. By contrast, the benchmark S&P 500 gained 68% during its historic run.
That means Universal Display beat one of the market’s best performances ever by a decisive 56%.
But don’t worry, I’m about to show you why there’s still so much upside ahead.
Tech Wealth Rule No. 3: Ride the Unstoppable Trends.
Look for stocks in red-hot sectors because they offer the best chance for life-changing gains.
Turns out, Universal Display scores very highly here as well. Then again, OLED screens are finding their way throughout the tech landscape from smartphones and tablets to HDTVs and laptops.
Moreover, OLED is great for the coming era of flexible electronics that are just now at the very bleeding edge. That adds a new growth route for the company for at least a decade.
MarketsandMarkets forecasts that by 2023, the OLED market will be worth $48.8 billion. That’s a roughly 15.2% compound annual growth rate from the base year of 2017.
Tech Wealth Rule No. 4: Focus on Growth.
Companies that have the strongest growth rates almost always offer the highest stock returns.
OLED grew sales in its most recent quarter by 20%. That’s a pretty big increase during a time when much of the U.S. economy has been on lockdown.
I believe that is a great accomplishment since millions of consumers like to see TVs smartphones and laptops in a showroom before deciding what to buy.
To be sure, this was a nice win for the firm. Over the past three years, it has grown its sales an average of 12%.
This is a stock in a class by itself. Investor’s Business Daily ranks OLED as the top equity in its peer group.
Tech Wealth Rule No. 5: Target Stocks That Can Double Your Money
This is where we look at the firm’s earnings growth and see how long it will take to double profits. By doing that we can figure out how long on average it should take for the stock to roughly double.
We have a real winner on our hands with this metric. After pouring through the financials in detail, I’m projecting that earnings per share will grow at an average of 26% a year.
Now we use what I call my doubling calculator. Mathematicians call it the Rule of 72. Let’s divide the compound profit growth rate of 30% into the number 72.
We find that it should double in just shy of 3 years. Given that OLED doubled after the March 23 rebound, I actually think this is a conservative forecast.
This is one of those stocks that can really help you improve the value of your portfolio.
It doesn’t take many stocks like OLED to double in value to help you get closer to achieving financial freedom.
Cheers and good investing,
— Michael A. Robinson
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Source: Strategic Tech Investor