Corning (GLW) closed the most recent trading day at $28.74, moving -1.74% from the previous trading session. This move lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.2%.
Coming into today, shares of the specialty glass maker had gained 1.04% in the past month. In that same time, the Computer and Technology sector gained 2.57%, while the S&P 500 gained 2.67%.
GLW will be looking to display strength as it nears its next earnings release. In that report, analysts expect GLW to post earnings of $0.45 per share. This would mark a year-over-year decline of 23.73%. Meanwhile, our latest consensus estimate is calling for revenue of $2.69 billion, down 12.81% from the prior-year quarter.
GLW's full-year Zacks Consensus Estimates are calling for earnings of $1.74 per share and revenue of $11.50 billion. These results would represent year-over-year changes of -2.25% and +0.86%, respectively.
It is also important to note the recent changes to analyst estimates for GLW. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. GLW is currently a Zacks Rank #3 (Hold).
Digging into valuation, GLW currently has a Forward P/E ratio of 16.79. This valuation marks a discount compared to its industry's average Forward P/E of 25.27.
We can also see that GLW currently has a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Communication - Components industry currently had an average PEG ratio of 2.4 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Corning Incorporated (NYSE:GLW
Original post