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Corning Incorporated (GLW), Semtech Corporation (SMTC), Polycom Inc (PLCM): Three Technology Stocks You Want to Watch

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Some companies with solid product lines that tend to be at the leading edge of their respective markets have seen their stocks slip of late, as earnings comparisons have been under pressure. That said, results, for many, are apt to turn positive be it in the current quarter or later this year. Their combinations of strengthening customer demand, along with fundamentally sound business models, ought to support rebounds in profitability, and thus share prices.

Here’s an overview of several stocks you may consider as portfolio additions.

Corning Incorporated (NYSE:GLW)

Corning Incorporated (NYSE:GLW) — LCD Glass market expansion likely to support upturn

Market expectations are that sales of LCD televisions will climb a high single-digit percentage this year. With pricing anticipated to decline only about 2% to 3% sequentially per quarter, growth appears to be on tap. Therefore, sales and earnings from Corning Incorporated (NYSE:GLW)‘s wholly-owned display business and Samsung Corning Incorporated (NYSE:GLW) equity holding ought to improve as the year progresses.

Another factor driving resumed bottom-line gains at Corning Incorporated (NYSE:GLW) should be rising sales of small-form factor Gorilla Glass utilized in notebook computers and smartphones. This growth business is likely to ignite sales improvements in the second half of this year. Given slight improvements in its telecom and environmental unit sales, as well, an overall upturn could be in store.

Corning Incorporated (NYSE:GLW) shares offer favorable bounce-back potential at the current quote, along with a decent dividend. Their forward P/E is 10.1x, based on 2013 earnings of $1.30 a share.

Semtech Corporation (NASDAQ:SMTC) — Results to get back on pace with acquisition integrated

Semtech Corporation (NASDAQ:SMTC)’s March 2012 acquisition of Gennum has been a boon to revenue though dilutive to its bottom line. In its favor, for the latest quarter ended in April, Gennum’s contribution was about break-even. Accordingly, I think the full inclusion of Gennum’s optical and video broadcast product lines into Semtech Corporation (NASDAQ:SMTC)’s offerings will begin to have a positive effect on results soon.

In addition, Semtech Corporation (NASDAQ:SMTC)’s advanced communications unit looks poised for growth, thanks to the roll-out of high-bandwidth networks in China and the U.S. to support the increasing usage of smartphones and other mobile devices. Based on these factors, the outlook seems favorable for the balance of fiscal 2014 (ends in January).

I have always liked Semtech Corporation (NASDAQ:SMTC) as a long-term semiconductor holding in light of its consistently aggressive levels of R&D spending, allowing gross margins to expand above 61%. I believe the company will remain a beneficiary of product development, particularly in its power management and high reliability unit, where it is gaining a presence with automakers. Look back on my recent blog as to the opportunities for electronics/semi companies in the auto market. (see blog).

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