Corning Is Cheap, But Is It A Buy?

We can also compare Corning to other suppliers for tablet and smartphone companies, including Cirrus Logic, Inc. (NASDAQ:CRUS), Fusion-IO, Inc. (NYSE:FIO), and Qualcomm, Inc. (NASDAQ:QCOM). Fusion-io is another low-earnings company; while its revenue growth has been impressive recently, making it at least possible that net income will start to pick up, quite a bit of growth is already priced into the stock seeing as it trades at 53 times analyst consensus for 2014. At that price we would certainly wait for better results. Qualcomm, the largest of these companies by market capitalization at over $100 billion, has some characteristics of a “growth at a reasonable price” stock. Its trailing and forward P/Es are 17 and 13, respectively, and recent financial results have been quite good. While we would want to do more due diligence on the company it looks like a good prospect. That leaves Cirrus, whose valuation is quite low in terms of its trailing earnings and has been experiencing high growth recently as well. However, with 17% of the outstanding shares held short there is clearly a large bearish community and we would have to be careful when researching the company.

Still, Qualcomm and possibly Cirrus come out of our brief analysis as stocks which are at least worth a closer look. Corning’s multiples certainly look good, but with tablet and smartphone devices coming down in price we would generally expect supplier margins to face pressure as well and would certainly want to see the company can sustain its current levels of business- if not actually grow- before recommending it as a value stock.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!