Continuing its rich legacy of developing pioneering products for the various industry verticals, Corning Incorporated (GLW - Free Report) recently unveiled the industry’s first automotive glass solutions that deliver impeccable performance and superior system economics. The products, showcased to the public for the first time in 2019 Consumer Electronics Show in Las Vegas, attracted great interest from prospective manufacturers.
In order to tap the huge market potential for connected and immersive driver experience in the cockpit, Corning developed two AutoGrade cover glass solutions for auto interiors — one in 2D and the other in 3D format. Both the product variants are subjected to rigorous quality checks and trial runs for the highest reliability performance. These include industry-approved reliability tests using Corning`s system-level design guidelines to have the perfect blend of authentic feel, superior durability and advanced optics.
While the 2D cover glass is primarily suited to flat applications, the 3D glass is more suitable for shaped or curved applications. The 3D glass also has a unique ability to bend at room temperature, thereby enabling it to cover the curved surfaces without compromising on the reliability factor. The products are developed using Corning’s proprietary ColdForm technology, which further reduces shaped cover-glass manufacturing costs by about 40% compared with other available variants in the market.
With such state-of-the-arts products, the stock has returned 4.4% against the decline of 6.7% for the industry in the past six months.
Corning is a leading innovator in the glass substrate industry. The company has been developing formulations that are not only suitable for imparting superior picture quality, but also taking care of their effects on the environment. The company’s fusion technology reduces glass thickness, enabling panel manufacturers to do away with thinning costs that are usually necessary for making slimmer, lighter and more power efficient consumer devices. In addition, the substrate composition makes it particularly eco-friendly and thus more easily acceptable to all.
Multiple factors should also drive Corning’s fiber optic solutions business over the next few years, primarily the increasing use of mobile devices that require efficient data transfer and efficient networking systems. Supporting this trend is the proliferation of clouds, which is now resulting in increased storage and even computing on a virtual plane. Since both consumers and enterprises are using the network more, there is tremendous demand for quality networking. Moreover, data consumption patterns are changing. For instance, there is a growing propensity to consume video content, thus creating the need for faster data transfer. Since optical networks are more efficient and most of the existing networks are copper-based, the demand for optical solutions is particularly strong. Corning has several products focusing on the datacenter with a portfolio consisting of optical fiber, hardware, cable and connectors that helps it to create optical solutions to meet varying consumer needs. We believe that the expanding fiber optic market along with its growing presence in the automotive sector is likely to drive the company’s growth in the long haul.
Corning currently carries a Zacks Rank #3 (Hold). Some top-ranked stocks in the same space are Acacia Communications, Inc. (ACIA - Free Report) , Aerohive Networks, Inc. (HIVE - Free Report) and Vocera Communications, Inc. (VCRA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acacia has long-term earnings growth expectation of 12.4%. It surpassed estimates thrice in the trailing four quarters, average beat being 48.4%.
Aerohive has long-term earnings growth expectation of 22%. It exceeded estimates thrice in the trailing four quarters, average beat being 150%.
Vocera has long-term earnings growth expectation of 18.7%. It surpassed estimates in each of the trailing four quarters, the average beat being 125.8%.
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