Back to top

Image: Bigstock

Corning (GLW) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Corning (GLW - Free Report) closed at $35.44 in the latest trading session, marking a -1.06% move from the prior day. This change lagged the S&P 500's daily loss of 0.75%.

Prior to today's trading, shares of the specialty glass maker had lost 0.86% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.47% and lagged the S&P 500's gain of 0.32% in that time.

Corning will be looking to display strength as it nears its next earnings release. On that day, Corning is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 5.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.79 billion, up 8.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $15.37 billion. These totals would mark changes of +14.01% and +8.87%, respectively, from last year.

Any recent changes to analyst estimates for Corning should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Corning currently has a Zacks Rank of #3 (Hold).

Investors should also note Corning's current valuation metrics, including its Forward P/E ratio of 15.15. Its industry sports an average Forward P/E of 17.73, so we one might conclude that Corning is trading at a discount comparatively.

Also, we should mention that GLW has a PEG ratio of 2.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GLW's industry had an average PEG ratio of 1.76 as of yesterday's close.

The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Corning Incorporated (GLW) - free report >>

Published in