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Corning (GLW) Outpaces Stock Market Gains: What You Should Know

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Corning (GLW - Free Report) closed the most recent trading day at $37.53, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.42%. At the same time, the Dow added 1.82%, and the tech-heavy Nasdaq gained 0.61%.

Prior to today's trading, shares of the specialty glass maker had lost 0.57% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.17% and the S&P 500's loss of 2.09% in that time.

Corning will be looking to display strength as it nears its next earnings release. In that report, analysts expect Corning to post earnings of $0.53 per share. This would mark year-over-year growth of 1.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.64 billion, up 9.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $14.04 billion. These totals would mark changes of +48.2% and +22.56%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Corning. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Corning is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Corning's current valuation metrics, including its Forward P/E ratio of 17.86. Its industry sports an average Forward P/E of 19.07, so we one might conclude that Corning is trading at a discount comparatively.

Meanwhile, GLW's PEG ratio is currently 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Communication - Components stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.

The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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