Corning Incorporated GLW recently collaborated with South Korean electronics giant, LG Electronics, and automotive electronics technology leader, Visteon Corporation VC to deploy curved automotive interior glass solutions. The alliance is likely to drive significant demand for Gorilla Glass and other fiber optic products, thereby fortifying Corning’s position in the glass substrate industry.
Dubbed ColdForm Technology, it is aimed at enhancing the curved automotive display modules with advanced glass solutions, immersive display designs and reliability testing services. The avant-garde glass technology also ensures constant synchronization of information between various entertainment systems and mobile devices with rapid response and best-in-class interactive displays. With its trademark durability of AutoGrade Gorilla Glass, ColdForm glass provides a safe car interior that can endure sudden traffic mishaps.
Further, the much-acclaimed in-car solution will allow automakers to save costs considerably compared with traditional hot-formed glasses, primarily because of the ease of cutting, preparing and shipping flat glass sheets. It provides ample scope of freedom in design and creativity to deliver industry-leading curved display modules for digital clusters and integrated center stack applications. This, in turn, makes ColdForm Technology an essential ingredient in the digital revolution of automotive interior design.
Despite macroeconomic headwinds, Corning continues to outpace the market it serves. The company is seeking to extend its strong performance under its new 2020-2023 Strategy & Growth Framework, while focusing on portfolio depth and financial strength to enhance shareholder returns.
The company has been developing innovative formulations that are not only suitable for imparting superior picture quality, but also taking care of their effects on the environment. Several other factors are also expected to drive Corning’s fiber optic solutions business over the next several years, primarily the burgeoning use of mobile devices that require efficient data transfer and efficient networking systems. As optical networks are more efficient and most of the existing networks are copper-based, demand for optical solutions is particularly strong. Corning has several products focused on this market to meet the varying consumer needs and aims to benefit significantly from the underlying growth trend.
Corning has long-term earnings growth expectation of 8.1%. Driven by diligent execution of operational strategies, the stock has rallied 7.5% compared with industry’s rise of 0.4% in the past three months.
Corning currently has a Zacks Rank #4 (Sell).
A couple of better-ranked stocks in the industry are SeaChange International, Inc. SEAC and Ooma, Inc. OOMA, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SeaChange has long-term earnings growth expectation of 10%.
Ooma has long-term earnings growth expectation of 47.7%.
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