Summary:
• Corning Incorporated (NYSE:GLW) fell 6% on Wednesday, after the company cut its fiscal year guidance.
• Based on its market cycles, we believe the stock has further downside risk in the coming months.
Corning (GLW) Stock Weekly Chart from askslim.com
Corning, which produces display technology, revised its revenue forecast for the optical communications segment. Management now expects sales to decline by 3% to 5% for the current fiscal year, compared to the average analyst projection of a 4.3% increase.
Stepping back, the company explained that: “For full-year 2019, we continue to expect to grow faster than the overall glass market and volume growth to be up slightly.”
In any case, our approach to stock analysis uses market cycles to project price action. The stock is likely now in the declining phase of its current cycle. If this is the case, then the remainder of the cycle into December will be quite rocky. Our target is below $26.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.