We identify one small-cap stock to target, Universal Display (OLED), and two to sell, Ready Capital (RC) and Palomar Holdings (PLMR). OLED has limited growth and declining free cash flow margin. RC faces a net interest income decline and falling EPS. PLMR, on the other hand, has a strong position in the catastrophe insurance market and is worth considering.
Universal Display Corporation (OLED) stock has been upgraded from a sell candidate to a hold/accumulate candidate following a recent trading session on July 18, 2025. The stock price fell by -0.119% from $151.40 to $151.22, but this decline was accompanied by a decrease in trading volume, which is a positive sign as volume should follow the price movements [1].
The short-term trend for OLED remains strong, and the stock is expected to rise by 21.02% over the next three months, with a 90% probability of holding a price between $172.72 and $201.69 at the end of this period [1]. However, the stock holds several negative signals, including sell signals from both short and long-term moving averages and a sell signal from the 3-month Moving Average Convergence Divergence (MACD). Despite these signals, the stock is considered a hold candidate due to the potential for a turnaround situation [1].
Universal Display Corporation finds support from accumulated volume at $144.02, which may hold a buying opportunity as an upwards reaction can be expected when the support is being tested [1]. The stock has very controlled movements and good liquidity, making the risk considered very low [1].
On Monday, July 21, 2025, the stock is expected to open at $151.72 and move between $149.16 and $153.28, giving a possible trading interval of +/-$4.12 (+/-2.76%) up or down from the last closing price [1].
Ready Capital (RC) and Palomar Holdings (PLMR)
Ready Capital (RC) faces a net interest income decline and falling EPS, making it a candidate for sale. Palomar Holdings (PLMR), on the other hand, has a strong position in the catastrophe insurance market and is worth considering. However, further analysis is required to determine the best course of action for these stocks.
References
[1] https://stockinvest.us/stock/OLED
[2] https://www.nasdaq.com/articles/universal-display-director-buys-342-shares
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