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
With that in mind, let's take a closer look at Corning's business and see what CAPS investors are saying about the stock right now.
Corning facts
| Headquarters (Founded) | Corning, N.Y. (1851) |
| Market Cap | $24.5 billion |
| Industry | Electronic components |
| Trailing-12-Month Revenue | $7.3 billion |
| Management | Chairman/CEO Wendell Weeks Vice Chairman/CFO James Flaws |
| Return on Equity (Average, Past 3 Years) | 16.5% |
| Cash/Debt | $6.36 billion / $2.27 billion |
| Dividend Yield | 1.3% |
| Competitors |
3M Alcatel-Lucent TE Connectivity |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 3,995 members who have rated Corning believe the stock will outperform the S&P 500 going forward. These bulls include spearson1 and avanwart.
Late last month, spearson1 touched on several of Corning's positives:
All parts of the business growing strongly apart from LCD TV. Firm is gradually rebalancing away from display into stronger growing areas (telecom, environmental, & life sciences). Valuation is very low and firm has strong balance sheet.
In fact, Corning currently sports a cheapish price-to-cash flow of 6.7. That represents a discount to competitors like 3M (13.1), Alcatel-Lucent (70.9), and TE Connectivity (9.5).
CAPS member avanwart elaborates on the Corning bull case:
They are creating conditions to take advantage of China's appetite for TV's, Tablet P.C.'s, as well as mobile phones. All of these products have been touted to use Gorilla glass. Furthermore, the current markets that Corning has established provide arguments for continued revenue streams at levels that give a P/E well below 10 (at the time of this post). ...
If Corning's Gorilla Glass continues to be the choice for OLED displays then we are looking at a potentially wide moat for years to come. Lastly, I would look for evidence of acquisitions. Corning has cash to burn and this could be used to leverage market position.
What do you think about Corning, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
