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Corning Hits 52-Week High, Innovative Pipeline Key Catalyst

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Shares of Corning Inc (GLW - Free Report) rallied to a new 52-week high of $23.35, eventually closing a tad bit lower at $23.33 on Sep 27. This represents a strong one-year return of approximately 44.2%, better than the S&P 500’s 14.6% over the same period.

Currently, Corning holds a Zacks Rank #3 (Hold). Notably, the stock has a market cap of $24.19 billion.

Key Factors

Corning is primarily a developer of advanced glass substrates for multiple markets. The company’s innovative product pipeline is a key catalyst. It recently ventured into the wearables market through the introduction of Gorilla Glass SR+, which is expected to deliver 70% better damage tolerance and 25% better surface reflection in comparison to similar products available in the market.

The superior features of SR+ will drastically reduce visible scratches while boosting optical performance, outdoor readability and battery life of gadgets. Samsung’s Gear S3 smartwatch, slated to roll out this fall, will be the first gadget to feature Gorilla Glass SR+.

CORNING INC Price and Consensus

 

CORNING INC Price and Consensus | CORNING INC Quote

Moreover, strong growth prospects for Corning’s fiber optic solutions business over the next few years is a major driver. We expect growing demand in the optical communications space to augur well for the company in the long run.

Estimate Revisions

The Zacks Consensus Estimate for fiscal 2016 has remained steady at $1.41 over the last 60 days. However, fiscal 2017 estimates increased by a penny to $1.59 over the same time frame.

Key Sector Picks

A better-ranked stock in the sector is Acacia Communications , which sports a Zacks Rank #1 (Strong Buy). Estimates for 2016 and 2017 have surged by 65 cents (53.3%) and 20 cents (9.3%), respectively, to $1.87 and $2.35 over the last 60 days.

Investors interested in the same sector may also consider UTStarcom Holdings Corp. (UTSI - Free Report) . Estimates for 2016 narrowed to a loss of 4 cents from a loss of 14 cents over the same time frame. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Another favorably placed stock is Harmonic Inc. (HLIT - Free Report) , carrying a Zacks Rank #2 (Buy). Estimates for 2016 narrowed to a loss of 12 cents from a loss of 20 cents over the last 60 days. For 2017, estimates have reversed to earnings 14 cents from a loss of a penny over the same time frame.

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