Corning (GLW) Dips More Than Broader Markets: What You Should Know
Corning (GLW) closed at $32.77 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the specialty glass maker had gained 4.14% over the past month, outpacing the Computer and Technology sector's gain of 1.72% and the S&P 500's gain of 2.02% in that time.
Investors will be hoping for strength from Corning as it approaches its next earnings release, which is expected to be July 26, 2022. The company is expected to report EPS of $0.57, up 7.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.78 billion, up 8% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.35 per share and revenue of $15.36 billion, which would represent changes of +13.53% and +8.76%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Corning. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% lower. Corning is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Corning has a Forward P/E ratio of 14.14 right now. For comparison, its industry has an average Forward P/E of 15.12, which means Corning is trading at a discount to the group.
It is also worth noting that GLW currently has a PEG ratio of 2.28. 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 was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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