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Corning Acquires STRAN, Expands Presence in New Markets

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Corning Inc. (GLW - Free Report) recently announced the acquisition of STRAN technologies, a U.S. based manufacturer of cables and connectors that are used in the land-based tactical and naval environments. STRAN primarily caters to the military/aerospace, oil/gas and IT services industries.

Corning is primarily a developer of advanced glass substrates for multiple markets. The stock has outperformed the broader market on a year-to-date basis. While the stock has returned 35.8%, the Zacks Communications Components industry generated a return of 29.21%.

The bullish momentum in the stock could be primarily attributed to solid performance from the Display technologies and Optical Communications segment. We believe the company remains focused on expanding its footprint in the automotive market, which will drive top-line growth going ahead.


Currently, Corning commands market leadership in the consumer electronics space with its Corning Gorilla Glass 5. Notably, the company also introduced the Gorilla Glass SR+ meant for the wearables segment.

In this regard, the latest acquisition expands Corning’s product portfolio, which will extend its presence into military/aerospace and oil/gas markets going forward.

Meanwhile, the company recently announced an equity investment in Menlo Micro, a newly formed company backed by G.E. Ventures and investments from Microsemi and Palladian Capital Group.
 

CORNING INC Price and Consensus

 

CORNING INC Price and Consensus | CORNING INC Quote

Moreover, Corning’s management recently announced a new $4 billion share buyback program. By the end of 2016, the company expects to return approximately $6 billion to its shareholders in the form of dividends and share buybacks.

Zacks Rank & Other Key Picks

Corning currently carries a Zacks Rank #2 (Buy). Acacia Communications and KVH Industries (KVHI - Free Report) are two similarly ranked stocks, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the Zacks Consensus Estimate for KVH’s current year has remained steady at 30 cents in the last 30 days.

The Zacks Consensus Estimate for Acacia’s current year has remained steady at $2.33 per share in the last 30 days.

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