Corning Incorporated: A Stellar Performer in the Stock Market
New York-based Corning Incorporated (GLW) is a leading firm in materials science, focusing on glass, ceramics, and advanced technologies. With a market cap of $41.9 billion, Corning provides innovative solutions in telecommunications, life sciences, consumer electronics, and automotive industries.
Impressive Stock Performance
Over the past year, shares of Corning Incorporated have significantly exceeded the broader market’s performance. The stock has gained 74.6%, while the S&P 500 Index ($SPX) has only rallied nearly 35.5%. In 2024 alone, GLW shares are up 58.7%, contrasting with the SPX’s 25.5% increase so far this year.
Taking a closer look, GLW’s success is notable when compared to the Technology Select Sector SPDR Fund (XLK), which has gained about 31.6% over the past year.
Strong Earnings Report
On Oct. 29, Corning reported its Q3 earnings results, causing GLW stock to rise by 4.7%. The company achieved an adjusted EPS of $0.54, surpassing the consensus estimate of $0.52. Adjusted revenue reached $3.73 billion, exceeding Wall Street’s expectations of $3.70 billion.
The performance of Corning’s Optical Communications segment was particularly robust, with a 36% year-over-year sales leap, fueled by a 55% growth in its Enterprise business. This surge is attributed to high demand for new optical connectivity products and technologies linked to generative AI.
Outlook for 2024
Analysts anticipate that Corning Incorporated’s EPS will grow by 14.7% to $1.95 this fiscal year, which concludes in December. Corning’s earnings surprise history is varied; it exceeded consensus estimates in three of the last four quarters but missed once.
Currently, 12 analysts follow GLW stock, and the consensus rating is a “Moderate Buy.” This rating stems from eight “Strong Buy” and four “Hold” recommendations.
This outlook has improved over the last three months, where only seven analysts previously suggested a “Strong Buy.”
On Oct. 30, Oppenheimer analyst Martin Yang reaffirmed a “Buy” rating for Corning, setting a price target of $58, indicating a potential 20% increase from current levels. The mean price target of $53.77 shows an 11.3% upside based on GLW’s current share prices, while the Street-high target of $60 suggests a possible gain of 24.2%.
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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
