OLED and SHAK are set to hit fresh highs
Screen technology specialist Universal Display Corporation (NASDAQ:OLED) is trading up more than 12% before the open, after the company's first-quarter sales came in above estimates. OLED also forecast full-year revenue well above previous expectations, putting the shares on pace to hit a fresh 52-week high today after closing Thursday at $156.60, right near the 50-day moving average.
This would extend the enormous turnaround on the charts the security has enjoyed in recent months, as it was trading below $80 in early January. Brokerage firm Susquehanna is betting on more upside, too, moving its price target up to $185 from $180. Aside from bullish analyst notes, short covering could also provide tailwinds for OLD shares, since these traders have already been throwing in the towel. In the last two reporting periods, short interest was down 26.7%, but more than 11% of the float is still dedicated.
Burger joint Shake Shack Inc (NYSE:SHAK) is also sharply higher in pre-market trading, thanks to strong quarterly sales and an upwardly revised forecast for the year. Same-store sales, or "same-Shack" sales as they call it, were particularly impressive, rising a much better-than-expected 3.6%, while CEO Randy Garutti also called out the "ongoing opportunities" for the company in the digital space.
The results have SHAK shares up 6.9% before the open, setting them up for their highest close since July after closing at $62.91 yesterday. The stock had already been performing well, up 38.5% in 2019, but even though a number of price-target hikes have come through since yesterday's close, few analysts are pricing in substantial upside for the equity.
Specifically, at least seven bull notes came out on Shake Shack, and only SunTrust Robinson set its target above the stock's expected open, moving its mark up to $70. This isn't unusual, since just three of the 11 covering brokerage firms recommend buying SHAK, despite its strong showing on the charts.