Key Takeaways Corning shares surged Tuesday after the glass and fiber optic cable maker announced a $6 billion deal with Meta to supply its data centers. The company is a supplier to several tech heavyweights including Nvidia and Apple, and has been a big beneficiary of the AI boom. A deal with Meta Platforms (META) is the latest piece of good news boosting Corning (GLW) stock. Corning and Meta announced $6 billion deal for Corning to supply the Facebook and Instagram parent with fiber optic techno ...

Core Viewpoint - Corning (GLW) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Developments for Corning - Corning is expected to earn $2.50 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 3% over the past three months [8]. - The upgrade to Zacks Rank 1 places Corning in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks are considered for strong recommendations [9][10].

Core Viewpoint - The market anticipates Corning (GLW) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended September 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Corning is expected to report quarterly earnings of $0.66 per share, reflecting a year-over-year increase of +22.2% [3]. - Revenues are projected to reach $4.21 billion, which is a 12.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.15% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Corning is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.90% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - Corning currently holds a Zacks Rank of 2, suggesting a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Corning exceeded the expected earnings of $0.57 per share by delivering $0.60, resulting in a surprise of +5.26% [13]. - Over the past four quarters, Corning has consistently beaten consensus EPS estimates [14]. Conclusion - Corning is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors influencing stock performance ahead of the earnings release [17].

Core Viewpoint - Corning's business is thriving, particularly in the specialty glass sector, with a notable 84% increase in stock value over the past year, driven by demand in data centers and mobile consumer electronics [2][15][16] Company Performance - Corning is recognized for its specialty glass products, including fiber optic cables essential for data centers, contributing to its booming business [2][4] - The company has experienced significant growth, particularly in its data center segment, which is currently its fastest-growing business [4][11] - Corning's stock has risen by 84% in the last 12 months, reflecting strong market performance [2] Data Center Innovations - The data center segment is expected to grow further as the industry shifts from copper to optical fiber, which is more efficient for connecting AI clusters [4][6] - A notable example is Meta's Louisiana campus, which requires 8 million miles of fiber, enough to circle the Earth 320 times, highlighting the scale of fiber demand [7][8] - The transition to glass in data centers could lead to lower energy consumption and costs, although significant innovation is still needed [10][12] New Business Ventures - Corning is expanding into solar energy with plans to establish a large American-made ingot wafer plant in Michigan, which could triple its current solar business run rate [14] - The solar sector is becoming increasingly competitive, with government policies influencing energy costs [15] Resilience Against Tariffs - Corning's business has shown resilience against tariffs, with 90% of its US revenue generated from domestically produced products, minimizing the impact of international trade policies [16]