U.S. Markets closed

Is Corning Incorporated (GLW) a Suitable Value Stock?

Zacks Equity Research

Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?

One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Corning Incorporated GLW stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:

PE Ratio

A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.

On this front, Corning Incorporated has a trailing twelve months PE ratio of 18.2, as you can see in the chart below:



This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 20.6. If we focus on the long-term PE trend, Corning Incorporated’s current PE level puts it above its midpoint of 15.1 over the past five years, with the number having risen rapidly over the past few months.



Further, the stock’s PE compares favorably with the Zacks Computer & Technology sector’s trailing twelve months PE ratio, which stands at 22.7. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.



We should also point out that Corning Incorporated’s forward PE is roughly same as its trailing twelve months value, so we might say that the forward earnings estimates are incorporated in the company’s share price as of now. We define forward PE as current price relative to the Zacks Consensus Estimate for the current fiscal year.

P/S Ratio

Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.

Right now, Corning Incorporated has a P/S ratio of about 3.2. This is almost in line with the S&P 500 average. Also, as we can see in the chart below, this stand slightly below the highs for this stock in particular over the past few years.



Broad Value Outlook

In aggregate, Corning Incorporated currently has a Value Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Corning Incorporated a solid choice for value investors, and some of its other key metrics make this pretty clear too.

For example, the P/CF ratio (another great indicator of value) for Corning Incorporated is 10.1, a level that is lower than the industry average of 13.1. Clearly, GLW is a solid choice on the value front from multiple angles.

What About the Stock Overall?

Though Corning Incorporated might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of f and a Momentum Score of b. This gives GLW a Zacks VGM score — or its overarching fundamental grade — of D. (You can read more about the Zacks Style Scores here >>)

Meanwhile, the company’s recent earnings estimates have been mixed at best. The current quarter has seen four estimates go higher in the past thirty days compared to one downward revision, while the full year estimate has seen five upward and no downward revisions in the same time period.

This has had a mixed impact on the consensus estimate as the current quarter consensus estimate has dropped by 4.1% in the past month, while the full year estimate has inched higher by 1.2%. You can see the consensus estimate trend and recent price action for the stock in the chart below:

Corning Incorporated Price and Consensus
 

Corning Incorporated Price and Consensus | Corning Incorporated Quote

This somewhat mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.

Bottom Line

Corning Incorporated is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Despite having a Zacks Rank #3, the stock belongs to an industry which is ranked among the Top 32%, which indicates that broader factors are favorable for the company. Over the past two years, the industry’s performance has surpassed the broader market, as you can see below:



So, it might pay for value investors to delve deeper into the company’s prospects, as fundamentals indicate that this stock could be a compelling pick.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Corning Incorporated (GLW) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

  • Suze Orman has a killer question for your retirement
    Business
    MarketWatch

    Suze Orman has a killer question for your retirement

    Suze Orman is one of those singular personalities in the financial business who seems to be right on the pulse of everyone she meets. She’s written books, starred in her own television show and made innumerable appearances in person. Like Oprah

  • 7 Breakout Stocks to Buy That Are “Immune” to Volatility
    Finance
    InvestorPlace

    7 Breakout Stocks to Buy That Are “Immune” to Volatility

    With another disappointing session for the Dow Jones, investors are scrambling to find answers. More than likely, President Donald Trump will face a split government, which may yield increased volatility in Washington. Just recently, Wall Street tumbled when Treasury Secretary Steven Mnuchin decided to withdraw from an investment conference with Saudi Arabia.

  • Why Advanced Micro Devices, Inc. Stock Closed 11% Lower on Friday
    Business
    Motley Fool

    Why Advanced Micro Devices, Inc. Stock Closed 11% Lower on Friday

    Analyst Pierre Ferragu from financial firm New Street Research set his price target for AMD at $18 per share, arguing that the stock has been priced for a level of success that simply isn't realistic. "AMD's stock price reflects a scenario we don't believe possible," Ferragu wrote. In particular, Ferragu sees larger rival Intel (NASDAQ: INTC) getting its manufacturing act together as we speak.

  • Looks like when millennials have some money, they get an ...
    AXP
    CNBC Videos

    Looks like when millennials have some money, they get an ...

    CNBC's 'Squawk on the Street' team discusses markets ahead of the market open.

  • Marijuana investors may lose 90% of their money in Canada, so consider the really big prize elsewhere
    News
    MarketWatch

    Marijuana investors may lose 90% of their money in Canada, so consider the really big prize elsewhere

    Marijuana presents a tremendous opportunity for investors over the next few years. Naïve investors are excited. The reality is that professionals will pick their pockets, and many naïve investors who are excited now will end up losing 90% of their investment.

  • Business
    Benzinga

    Morgan Stanley's Recipe For Strong Q4 Guidance From Tesla

    Tesla Inc. (NASDAQ: TSLA) is set to report third-quarter earnings data in early November after a whirlwind of a quarter that included a chain of events that began Aug. 7 with CEO Elon Musk’s “funding secured” tweet and ended with a Securities and Exchange

  • Business
    Investopedia

    Market Sell-Off 80% Over, Will Be Reversed by Stock Repurchases: JPMorgan

    Last week, global markets were hit with a widespread shock that weighed on nearly all asset classes, encompassing even the cryptocurrency space, once viewed as a type of "safe haven" bet unrelated to the broader market. In a note to clients on Thursday, JPMorgan equity strategist Dubravko Lakos-Bujas and team forecasted for U.S. equities to make a comeback as fundamentals come back into play, highlighting stock buybacks as a key driver of the nine-year-bull market, as reported by CNBC.

  • Why Valero Energy, eBay, and New Age Beverages Slumped Today
    Business
    Motley Fool

    Why Valero Energy, eBay, and New Age Beverages Slumped Today

    Some major market benchmarks managed to hang onto their gains, but the Nasdaq Composite, and Russell 2000 indexes posted losses of 0.5% to 1.25%, and the S&P 500 was virtually flat. Valero Energy (NYSE: VLO), eBay (NASDAQ: EBAY), and New Age Beverages (NASDAQ: NBEV) were among the worst performers on the day. Valero Energy dropped 10% after the refinery company announced that it would buy back all outstanding units of its related MLP, Valero Energy Partners (NYSE: VLP).

  • Miami swimwear company sues Sears, Lampert for fraud
    Finance
    American City Business Journals

    Miami swimwear company sues Sears, Lampert for fraud

    A Miami swimwear company this week sued Sears Holdings Corp., Sears CEO Eddie Lampert, and Lampert's ESL Investments hedge fund for fraud in Cook County, Illinois. InGear Fashions is suing for $840,000, claiming in its Circuit Court of Cook County lawsuit that Sears, Lampert and ESL engaged in fraud by not paying the company for its swimwear, which it's been supplying to Sears for the past six years.

  • Suddenly Toxic, Saudi Prince Is Shunned by Investors He Courted
    World
    Bloomberg

    Suddenly Toxic, Saudi Prince Is Shunned by Investors He Courted

    Now Crown Prince Mohammed bin Salman could become the biggest risk to his own project. Everything changed when Jamal Khashoggi walked into the Saudi consulate in Istanbul on Oct. 2 and didn’t come out. Prince Mohammed, who’s denied any knowledge of Khashoggi’s fate, still has his defenders -– notably Donald Trump.

  • Hate Taxes? 37 States Make Social Security Tax Free
    Business
    Motley Fool

    Hate Taxes? 37 States Make Social Security Tax Free

    Over the course of your career, you'll probably have tens of thousands of dollars in Social Security payroll taxes withheld from your paychecks. Workers are confident that by paying those taxes up front, they'll be able to collect Social Security benefits

  • 3 Energy Stocks You Can Buy and Hold for the Next Decade
    Business
    Motley Fool

    3 Energy Stocks You Can Buy and Hold for the Next Decade

    North America needs to build $23 billion of new natural gas-related infrastructure annually through 2035, according to a recent report. Three of the best positioned to capture this growth are Kinder Morgan (NYSE: KMI), Williams Companies (NYSE: WMB), and TransCanada (NYSE: TRP), making them great stocks to buy and hold in the coming decade. Kinder Morgan is already the largest natural gas pipeline company in North America, operating roughly 70,000 miles of pipeline.

  • China’s Problems Keep Piling Up With Trump, Economy, and Markets
    Business
    Bloomberg

    China’s Problems Keep Piling Up With Trump, Economy, and Markets

    A day after the Shanghai Composite Index plunged to a four-year low and Trump took new steps to escalate his trade war with Beijing, third-quarter growth figures showed China’s economy expanding at the weakest pace since the depths of the global financial crisis in 2009. Economic policy makers including Vice Premier Liu He, who also weighed in on Friday, are now left walking a tightrope.

  • 3 Things Netflix Management Wants Investors to Know
    Business
    Motley Fool

    3 Things Netflix Management Wants Investors to Know

    Netflix (NASDAQ: NFLX) had a monster third quarter. The streaming giant bounced back from its disappointing second quarter (in which it still added 5.45 million paying subscribers) to exceed its Q3 projections by adding 6.15 million new subscribers. The

  • Don’t cheat yourself with the 4% rule
    Business
    MarketWatch

    Don’t cheat yourself with the 4% rule

    If you’re planning for retirement, you’re probably thinking about how much you’ll need, how long the money will last, and how much you can safely take out each year. You recognize that in retirement there will be a balancing act between spending on current needs while also preserving enough for your later years. Instead, all-too-often, retirees use simplified rules of thumb to determine how much to take out each year.

  • Should Congress cut entitlement programs to combat rising deficit?
    Politics
    Fox Business Videos

    Should Congress cut entitlement programs to combat rising deficit?

    Maya MacGuineas, Committee for a Responsible Federal Budget, and Wall Street Journal editorial page deputy editor James Freeman discuss America’s deficit problem and how President Trump asked members of his Cabinet to cut their departments’ budgets by 5 percent.

  • Marijuana stocks to watch: Aurora Cannabis investments may be more valuable than its pot
    News
    MarketWatch

    Marijuana stocks to watch: Aurora Cannabis investments may be more valuable than its pot

    Aurora Cannabis Inc. is a major pot producer, but if its bets on other cannabis companies continue to pay off, it may be able to stop actually growing weed on its own. Aurora (ACBFF)(CA:ACB) said recently its investments were worth more than C$700 million ($540 million) as of Sept. 21, bolstered in part by demand for pot stocks ahead of full legalization of marijuana in Canada on Wednesday. As the entire sector has benefited, so has Aurora’s portfolio, boosting the company’s fiscal fourth-quarter profit to C$79.9 million, after a loss of $20.8 million the year earlier.

  • Now is a ‘once-in-a-lifetime’ chance to invest in US pot companies, investor says
    Finance
    Yahoo Finance

    Now is a ‘once-in-a-lifetime’ chance to invest in US pot companies, investor says

    With some Canadian pot stocks posting triple-digit return rates this year, many retail investors have looked north to pour cash into cannabis. U.S. cannabis companies are worth a lot more than their current valuations suggest since federal illegality has put undue pressure on the industry, said David Wenger, a New York attorney and senior editor of the Cannabis Law Digest.

  • 1 Top Stock to Buy Amid October’s Turbulent Market
    Business
    Motley Fool

    1 Top Stock to Buy Amid October’s Turbulent Market

    In the past three weeks alone, stocks have tumbled about 5%, which has many investors unnerved. One top option to consider amid the current turbulence is Magellan Midstream Partners (NYSE: MMP), which has lost more than 5% of its value in the past few weeks. Because of that, investors can get an even better starting price on one of the top master limited partnerships (MLPs), potentially setting themselves up to earn market-beating returns in the coming years.

  • This Refining Giant Is the Latest Energy Company to Give Up on Its MLP
    Business
    Motley Fool

    This Refining Giant Is the Latest Energy Company to Give Up on Its MLP

    The energy sector continues to experience a gigantic consolidation wave, which is causing master limited partnerships (MLPs) to drop like flies. Valero Energy (NYSE: VLO) is behind the latest disappearing act in the space after it agreed to buy out its MLP Valero Energy Partners (NYSE: VLP). Valero Energy launched Valero Energy Partners in late 2013, joining its refining rivals in creating an income-producing vehicle that would steadily buy its parent's midstream assets.

  • America’s Biggest Employer Isn’t Hiring Seasonal Employees This Year. Here’s the Reason Why
    Business
    Money

    America’s Biggest Employer Isn’t Hiring Seasonal Employees This Year. Here’s the Reason Why

    For the third year, Walmart won’t be hiring tens of thousands of seasonal employees to provide extra support during the holidays. Instead, Walmart is forgoing the long-standing practice in favor of giving it’s full- and part-time employees more hours and opportunities to earn extra cash. The idea, Walmart says, is to fulfill the wishes of many of its employees.

  • Colorado’s Marijuana Market Just Hit This Huge Milestone
    Business
    Motley Fool

    Colorado’s Marijuana Market Just Hit This Huge Milestone

    Marijuana has been legally available in Colorado for recreational use since 2014, and consumers' appetite for marijuana products continues to grow due to the launch of new products, including concentrates and edibles. As a result, Colorado's annual marijuana sales surpassed $1 billion in August -- the earliest it has ever achieved that milestone. There's been some debate over how much money would move from the black market to regulated markets following legalization, but Colorado's experience suggests it's substantial.

  • MBS Says the Saudi Consulate in Turkey Is 'Sovereign Territory.' He's Wrong.
    World
    Time

    MBS Says the Saudi Consulate in Turkey Is 'Sovereign Territory.' He's Wrong.

    As speculation grew about the fate of the Saudi journalist Jamal Khashoggi, who vanished after entering his nation’s consulate in Istanbul on Oct. 2, the Saudi crown prince Mohammed bin Salman was quick to dispel rumors he had been murdered. “We have nothing to hide,” the de-facto Saudi leader, known by his initials MBS, said three days later. On one thing at least, the Crown Prince was mistaken — consulates and embassies are not, in fact, sovereign territory under international law.

  • Marijuana stocks to watch: Canopy Growth is the cannabis business’s $4 billion gorilla
    News
    MarketWatch

    Marijuana stocks to watch: Canopy Growth is the cannabis business’s $4 billion gorilla

    The following article is part of a package of stories that MarketWatch is publishing to mark the start of full legalization of cannabis for adult use in Canada on Wednesday. Smith Falls, Ontario–based Canopy Growth Corp. made headlines and drove cannabis stocks to new heights over the summer when it announced that Corona brewer Constellation Brands Inc. was going to invest an additional $4 billion in the company. Billed by both companies as a strategic partnership, the additional $4 billion investment adds to the 9.9% stake that Constellation bought in October of last year and sets the company up to either be bought outright by Constellation — via warrants that could increase its stake to more than 50% — or continue to work with the beverage company to create a range of consumer-focused cannabis products that may one day appear in markets in dozens of countries.

  • Tesla slides after Elon Musk announced lower-cost Model 3 (TSLA)
    Business
    Business Insider

    Tesla slides after Elon Musk announced lower-cost Model 3 (TSLA)

    Tesla CEO Elon Musk announced on Twitter on Thursday that a lower-cost Model 3 was immediately available for order on the company's website. The electric car will have a base price of $45,000 and is eligible for federal and state tax rebates. Tesla shares were down more than 3% Friday after — they gained as much as 2.2% earlier in the session.