3 Reasons to Buy Corning Incorporated (GLW) Stock Now

Page 1 of 2

Though Corning Incorporated (NYSE:GLW)‘s 13% year-to-date rise has slightly outpaced the broader market so far in 2013, Corning stock has some investors worried after falling nearly 12% from its 52-week-high set just last month.

Corning Incorporated (NYSE:GLW)

That said, despite the short-term drop, I still think there’s plenty to like about Corning Incorporated (NYSE:GLW) stock when you approach it from a long-term perspective.

Here are two reasons, then, you might want to buy Corning stock now:

A turn for the best

Remember, in April, I highlighted some comments from Corning Incorporated (NYSE:GLW) CEO Wendell Weeks at the company’s annual meeting, where he said he firmly believes Corning’s strong performance over the past two quarters shows Corning stock has “successfully formed bottom and [is] beginning to march up.”

Sure enough, Corning Incorporated (NYSE:GLW) has beaten analysts’ expectations on both the top and bottom lines during each of its past two quarters, which undoubtedly contributed to the stock’s recent gains.

With this in mind, I’d argue that nobody knows the ebbs and flows of the market better than Corning Incorporated (NYSE:GLW), a 162-year-old company, which, as Weeks also pointed out, has survived “recessions, depressions, world wars, industry meltdowns, and numerous evolutions driven by changing markets.”

Considering the fact that analysts are often annoyed by Weeks’ persistence in refusing to manage his company around quarterly-earnings reports, as I wrote before, ”I’m inclined to trust the man when he says Corning stock has turned the corner.”

Shareholder-friendly attitude

With that in mind, while owners of Corning stock can rest assured that management isn’t trying to fudge the numbers to cave to Wall Street’s demands, that’s not the only way the company rewards shareholders for their patience.

In April, Corning not only raised its quarterly dividend for the third time in 18 months to $0.10 per share, but also authorized a massive new share repurchase program, enabling it to buy back up to $2 billion in Corning stock through open market or private transactions. What’s more, the company also pointed out the new program is incremental to repurchases totaling $1.5 billion completed in December of last year.

But, considering Corning stock currently trades at just 12.2 times last year’s earnings, and only 10.1 times next year’s estimates, can you blame them for thinking it looks cheap?

A different view

Finally, in addition to Corning’s wildly popular products like Gorilla Glass — which is used to protect millions upon millions of smartphones and tablets, including Apple Inc. (NASDAQ:AAPL)‘s own iPhone and iPad lineup, as well as Samsung’s Galaxy series devices — Corning last week also announced a strategic collaboration with View, to further develop View’s incredible “dynamic glass” product.

Namely, according to the press release, Corning will lead from a financial investment standpoint as well as by providing access for View to Corning’s specialized fusion glass process, both of which will serve to support the development of dynamic glass technologies for exterior architectural applications.

But what, exactly, is dynamic glass? In short, think of a window pane which can automatically transition between clear and variable tints in response to the environment around it, in effect allowing it to regulate the amount of heat and glare that enters a building.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!