Why Corning Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty glass and ceramics giant Corning (NYSE: GLW  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Corning and see what CAPS investors are saying about the stock right now.

Corning facts

Headquarters (Founded)

Corning, N.Y. (1851)

Market Cap

$18.0 billion

Industry

Electronic components

Trailing-12-Month Revenue

$7.8 billion

Management

Chairman/CEO Wendell Weeks
Vice chairman/CFO James Flaws

Return on Equity (Average, Past 3 Years)

15%

Cash/Debt

$6.4 billion / $3.4 billion

Dividend Yield

2.9%

Competitors

Asahi Glass
Furukawa Electric
Sumitomo Electric Industries

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 5,345 members who have rated Corning believe the stock will outperform the S&P 500 going forward.

About a week ago, one of those Fools, TempoAllegro, succinctly summed up the bull case for our community:

Corning has fallen on hard times since the TV display business is not doing well now. However, both [Gorilla Glass] and fiber optic cables will eventually pick up. ...

Corning has 5 segments of the company, and I look to both environmental and life sciences divisions to play an increasingly important role in a world where both pollution control and lab research to help people overcome health threats is part of the new normal.

While the specialty materials segment has about 150 combinations of glass, ceramics, and crystals it sells for various uses, some day better uses for these materials will possibly be found, as with [Gorilla Glass]. ...

Perhaps over 160 years of experience with innovation has had something to do with not only excellence in products but strategic positioning of the company.

Of course, that short pitch doesn't even come close to telling the entire story of Corning. You're in luck, though. The Fool's brand-new premium report on Corning tells all sides of the story for one of the most intriguing companies in the world. You can grab your copy, which comes with free updates for 12 months, by just clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 05, 2012, at 2:37 PM, Mega wrote:

    Some of my notes on Corning.

    • Pricing weakness in display glass has been more severe than I expected - Corning's earnings were down around 40% year over year. But margin contraction appears to have stabilized

    • Despite the decline in earnings, Corning is still cheap. Removing excess cash (a huge part of Corning's balance sheet), the effective P/E is around 6.

    • The display glass industry is very concentrated (primarily Corning, Asahi Glass and Nippon Glass) and Corning is the lowest cost producer and best managed financially.

    • Large display glass is saturated in developed markets, so profitability and growth expectations are low.

    • Future growth is expected to come from emerging markets and other segments like Gorilla Glass. Corning has been investing in R&D and manufacturing to target those areas.

  • Report this Comment On December 05, 2012, at 4:51 PM, TLMDrexel wrote:

    Hi,

    Is the cash / debt figure quoted as:

    '$6.4 billion / $43.4 billion'

    correct?

    Thanks and regards.

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