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Corning Accelerates Toward 5G With New Technology Drop

Examining why investors should keep an eye on this tech stock

Jun 14, 2021 at 11:07 AM
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Corning Incorporated (NYSE:GLW) is an American multinational technology company that specializes in specialty glass, ceramics, and related materials. GLW's technology also includes advanced optics, primarily for industrial and scientific applications. Today, Corning's markets include optical communications, mobile consumer electronics, display, automotive, and life sciences. This afternoon, the security was last seen trading down 3.8% at $41.49.

On June 3, Corning announced the introduction of its latest technology, Corning SMF-28 Contour optical fiber, which is designed to help telecommunications operators address the ever-expanding number of connected devices, to build-out of 5G networks, and to help with the advances in cloud computing. GLW's new product will allow customers to seamlessly upgrade the company's optical infrastructures, enabling the cost-effective deployment of future-ready networks.

Corning stock has increased about 54% year-over-year and is up 65% since hitting a four-year low of $25.10. Additionally, shares of Corning stock have grown 16% year-to-date, and the equity is down 11% from its record high of $46.82. Aiding the stock's long-term run higher has been the ascending 100-day moving average. Corning stock also has a forward dividend $0.96 and a dividend yield of 2.22%.

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Fundamentally speaking, the security has great potential as a long-term investment because of continued accelerated growth and its current valuation. Although Corning stock currently trades at a price-earnings ratio of 30.61, its forward price-earnings ratio is estimated to be 20.75, which is amazing for a tech company with a more than $36 billion market cap. Even further, Corning has outperformed expectations on all four of its most recent earnings reports

The real inconsistencies for potentially investing in the equity are on the bottom-line, with the company experiencing minor setbacks in fiscal 2019 and fiscal 2020. However, GLW's overall growth has been positive. Corning has grown revenues by more than 13% since fiscal 2017.

Regardless, there looks to be plenty of room for bulls, with a preference for puts ruling the options pits. Specifically, the security's 10-day put/call volume ratio of 1.12 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), stands in the 93rd percentile of its annual range.

 
 

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