ViewApartMy last article on Corning (NYSE:GLW), entitled, “Corning: The 500 Pound Gorilla Glass Stock” appeared on iREIT on the 9th of January. GLW was trading for $30.59 when that piece debuted. I rated Corning as a Buy, and since then, the share price has increased by roughly 46%, well above the 17% gain posted by the S&P 500. Of course, it didn’t hurt that Corning was the S&P’s best performer last week after posting a 17.5% gain over a five-day period. The jump in share price followed management’s an ...

Core Insights - Corning Incorporated, valued at $38 billion, specializes in glass and ceramic technology, with products utilized in various sectors including electronics and drug research, and is now benefiting from the growing demand for AI-related technologies [1][5] - The company's stock has rebounded significantly, gaining approximately 75% since late last year, following a broader market shift in investor sentiment as inflation rates cooled [1][4] Financial Performance - Corning's recent earnings report exceeded analyst expectations, with the company projecting core sales of around $3.6 billion for the current quarter, an increase from the previous estimate of $3.4 billion [2][4] - The expected earnings per share are anticipated to be at the high end of the previously guided range of $0.42 to $0.46, marking the first year-on-year revenue increase in years [4] Growth Drivers - The bullish outlook is primarily attributed to the strong adoption of Corning's optical connectivity products for Generative AI, which is expected to contribute significantly to future sales growth [5][6] - Corning's leadership has expressed confidence in their "Springboard" plan, aiming to add over $3 billion in annualized sales over the next three years [5] Market Sentiment - Analysts have responded positively, with upgrades in ratings and price targets, including a notable high target of $50 from Argus, indicating further upside potential [6][7] - The stock is currently rated as a "Moderate Buy," with expectations for continued gains, particularly if it closes above $47 [3][7]

Core Insights - Corning shares have increased by 16% over the past two trading sessions, reaching a three-year high due to a positive outlook driven by rising demand for optical connectivity products used in generative AI applications [1][4] - The recent rally has occurred on the largest weekly trading volume since February 2018, indicating strong market conviction [3] - The stock may soon retest its April 2021 high of $46.82, with potential buying interest at key levels during profit-taking periods [1][5] Trading Volume and Technical Analysis - Corning shares have shown a sharp upward trend since late October, following a breakout from a descending channel [3] - The surge in stock price is supported by the largest trading volume in over five years, reflecting strong investor confidence [3] - The relative strength index (RSI) indicates bullish momentum but also suggests overbought conditions with a reading above 80 [3] Price Targets and Key Levels - In premarket trading, Corning shares were up 0.7% at $45.00, with a potential retest of the April 2021 high at $46.82 on the horizon [4] - A longer-term price target is projected around the $60 area based on historical price patterns [4] - Key levels to watch during profit-taking include $39, $35, and $31, which may attract buying interest [5]

Core Viewpoint - Corning Incorporated (GLW) has revised its Q2 2024 outlook positively due to increased demand for its optical connectivity products, particularly for generative AI applications, leading to a 10% rise in its stock price over the past week [1]. Financial Performance - GLW's Q2 sales are now expected to be $3.6 billion, up from a previous estimate of $3.4 billion, with adjusted earnings per share projected to be at the higher end of the earlier range of $0.42 to $0.46 [1]. - Over a longer term, GLW stock has increased by 30% from approximately $35 in early January 2021 to around $45 currently, while the S&P 500 has risen about 50% during the same period [1]. Stock Performance Comparison - GLW's stock returns have been inconsistent, with a 3% return in 2021, -14% in 2022, and -5% in 2023, underperforming the S&P 500 in both 2021 and 2023 [2]. - The S&P 500 had returns of 27% in 2021, -19% in 2022, and 24% in 2023, highlighting the challenges individual stocks face in consistently outperforming the index [2]. Valuation Insights - Current valuation estimates for GLW suggest it is appropriately priced at $42 per share, aligning with its market price, and trading at a P/E ratio of 22x expected earnings of $1.91 for the full year 2024 [3]. - The 22x P/E multiple is higher than the 18x average over the last five years, but this increase is considered justified due to a rebound in demand for its optical communication business amid the AI boom [3]. Growth Drivers - Corning aims to add $3 billion in annual sales over the next three years, with a rebound in optical communication being a key driver [4]. - The optical communication segment reported sales of $4.0 billion in 2023, reflecting a 20% year-over-year decline due to reduced demand from mobile carriers, but demand for fiber optics is expected to rise as data processing for AI systems increases [4].

Core Viewpoint - Corning Incorporated is experiencing a positive growth outlook driven by demand for optical connectivity products related to Generative AI, with a significant increase in share price by 31.29% since early May [1] Financial Performance - For Q2, Corning anticipates core sales of approximately $3.6 billion, up from a previous estimate of $3.4 billion, with core EPS growth expected to exceed the range of $0.42 to $0.46 [1] - The company projects an additional $300 million in turnover, raising total sales estimates to $14.1 billion, with a core operating profit increase from €2.52 billion to €2.6 billion [3] Growth Drivers - Corning's "Springboard" framework is expected to contribute over $3 billion in annualized top-line sales over the next three years, with a medium-term earnings lift anticipated [2] - The optical segment is projected to reach $4-5 billion in sales, representing 40% of total turnover, driven by a 25% CAGR in data center growth over the next five years [2] Valuation - The target price for Corning's shares is set at $36 based on a P/E multiple of 16x, with potential to reach $55 per share using a sector median FWD P/E of 24.5x, indicating the company is currently undervalued [4] Market Position - Corning holds a leading position in technical glass, with optical fiber accounting for 30% of sales and display glass (TVs) representing approximately 26% of sales [2]

Some stocks fly under the radar of investors even as they quietly dominate the industry in which they operate. These stealth stocks rise to the top by developing competitive advantages. This allows them to take market share from competitors and deliver strong financial results.Wall Street analysts who cover specific economic sectors and their competing stocks might notice the dominance of a particular company. However, retail investors often miss out. Lack of media coverage and attention to certain stocks a ...

Core Viewpoint - Corning has raised its second-quarter sales forecast due to the demand for generative artificial intelligence solutions, leading to a significant increase in its stock price and market capitalization [1][2]. Sales Forecast - Corning expects core sales of approximately $3.6 billion for the second quarter, which is $200 million higher than previous estimates, resulting in a 5.88% sales increase [2]. - The stock price surged from $38.50 to around $44.20 following the announcement [2]. Valuation Metrics - Corning's stock is currently rated with a "D" on valuation, primarily due to a high price-to-earnings GAAP multiple of nearly 60 times [2][3]. - The market capitalization increased by $4.67 billion to $37.88 billion, raising concerns about stretched valuations [2]. Growth Catalysts - The strong adoption of Corning's optical connectivity products for GenAI is a key growth driver, with plans to add over $3 billion in annualized sales over the next three years under the "Springboard" initiative [7]. - The company anticipates cyclical factors and secular trends will support sales growth from Q2 through the next three years [7]. - Corning expects automotive glass sales to triple between 2023 and 2026, contingent on sector trends [7]. Financial Performance Metrics - Corning's revenue growth year-over-year is reported at -9.51%, with forward growth projected at 0.20% [6]. - EBITDA growth year-over-year is -12.45%, with forward growth expected at 3.36% [6]. - The diluted EPS growth year-over-year is -31.98%, with forward growth projected at 1.95% [6]. Market Position - Corning is positioned as a beneficiary of the AI boom, alongside companies like Coherent and Celestica, as demand for hardware to support AI computational processing rises [1]. - The company is seeing renewed investments from carrier customers in optical communications, which is expected to contribute positively to its sales [7].

Core Insights - Corning Incorporated (GLW) has revised its second-quarter earnings outlook, expecting core sales to reach approximately $3.6 billion, a 6% increase from the previous forecast of $3.4 billion [1] - The expected core earnings per share (EPS) are projected to be at the high end or slightly above the prior guidance range of 42-46 cents, indicating year-over-year growth [1] Market Performance - Corning's shares have increased by 22.9% over the past year, while the industry has seen a growth of 74.2% [3] Demand Drivers - The outperformance is attributed to rising demand for Corning's optical product portfolio, particularly for generative AI applications, which require fiber optic solutions for data transmission [2] - Corning anticipates that its Springboard framework will contribute over $3 billion in annualized sales over the next three years, supported by favorable cyclical and secular trends [2] Market Position - Corning maintains an optimistic outlook across its markets, backed by strong market positions, innovative product offerings, and robust customer relationships [2] - The company is well-positioned to capitalize on favorable demand trends, expecting solid incremental profit and cash flow in the upcoming quarter [2]

Material science firm Corning (NYSE:GLW) stock jumped after it raised second-quarter guidance.The maker of fiber optic cabling is now considered an artificial intelligence (AI) play.Management said sales for the current quarter will be $3.6 billion, up from a previous estimate of $3.4 billion, with earnings at the high range of between 42-46 cents per share.GLW stock was due to open this morning at $43.44 per share, a market capitalization of $37 billion on expected sales of $12.4 billion. The company will ...

Corning (GLW) shares ended the last trading session 12% higher at $43.05. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.1% gain over the past four weeks.The uptrend in share prices can be primarily attributable to the bullish preliminary results for the second quarter of 2024. Management currently expects second-quarter revenues to be about $3.6 billion, exceeding its earlier guidance of $3.4 billion. The impro ...