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Corning Incorporated (GLW), headquartered in Corning, New York, develops and manufactures specialty glass and ceramics. Valued at $33.36 billion by market cap, the company’s markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences.
Shares of this leading innovator in materials science have underperformed the broader market over the past year. GLW has gained 14.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.8%. However, in 2024, GLW stock is up 24.2%, surpassing SPX’s 7.7% rise on a YTD basis.
Narrowing the focus, GLW’s outperformance is apparent compared to the S&P 500 Technology Sector SPDR (XLK). The exchange-traded fund has gained about 12.7% over the past year. Moreover, GLW’s double-digit gains on a YTD basis compare to the ETF’s marginal gains over the same time frame.
On Jul. 30, GLW shares closed down more than 6% after the company reported its Q2 results. Its adjusted EPS of $0.47 beat the consensus estimates of $0.46, and its adjusted revenue rose 3.4% year over year to $3.60 billion, surpassing Wall Street expectations of $3.49 billion. The company forecasted Q3 core sales of about $3.70 billion, weaker than the consensus estimates of $3.81 billion. Moreover, it expects its Q3 core EPS to be between $0.50 and $0.54.
For the current fiscal year, ending in December, analysts expect GLW’s EPS to grow 11.8% to $1.90 on a diluted basis. The company’s earnings surprise history is mixed. It beat and matched the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 11 analysts covering GLW stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings and five “Holds.”
This configuration is more bullish than three months ago, with four suggesting a “Strong Buy” and one giving a “Moderate Buy.”
Recently, Barclays analyst Tim Long maintained a “Hold” rating on GLW stock with a price target of $40, implying a potential upside of only 2.7% from current levels.
The mean price target of $44.33 represents a 13.8% upside from GLW’s current price levels. The Street-high price target of $55 suggests an ambitious upside potential of 41.2%.
On the date of publication, Dipanjan Banchur 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.
