From Nasdaq: 2024-08-07 14:54:35

Corning Inc. (GLW) reported record sales growth in Q2 2024, driven by strong adoption of optical connectivity products tailored for generative AI. Despite a post-earnings pullback, the stock is up 25% year-to-date, outperforming the market. Corning’s valuation metrics suggest it may be undervalued compared to sector peers with a forward P/E ratio of 20.46 and P/S ratio of 2.30. The company’s consistent dividend policy adds to its attractiveness with a yield of 2.92%.

Corning’s strategic moves, like a major supply agreement with Lumen Technologies and innovations like Gorilla Armor for smartphones, highlight its commitment to growth and innovation. The recent opening of a Digital & IT Centre in India emphasizes Corning’s global expansion efforts.

The company’s Q2 2024 financial results showed a return to year-over-year sales growth, exceeding revenue and EPS guidance. Despite softer Q3 guidance, Deutsche Bank upgraded Corning to a “buy,” citing double-digit EPS growth potential driven by AI-related technologies. Analysts have a “moderate buy” consensus with a mean target price of $44.33, implying a potential 17.3% upside. In light of strategic advancements and positive analyst sentiment, GLW stock appears to be a promising buy for investors seeking long-term growth.



Read more at Nasdaq: Is Corning a Good Stock to Buy After Earnings?