Why Corning Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty glass and ceramics giant has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Corning and see what CAPS investors are saying about the stock right now.

Corning facts

Headquarters (founded)

Corning, N.Y. (1851)

Market Cap

$22.4 billion

Industry

Electronic components

Trailing-12-Month Revenue

$7.9 billion

Management

Chairman/CEO Wendell Weeks

Vice Chairman/CFO James Flaws

Return on Equity (average, past 3 years)

13.1%

Cash / Debt

$5.8 billion / $2.9 billion

Dividend Yield

2.6%

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 5,399 members who have rated Corning believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, Gainster, succinctly summed up the Corning bull case for our community:

A relatively cheap dividend stock with a trailing P/E of 12.3, in an innovative and long standing company, in a not so innovative industry. ...

They have positioned [themselves] as a brand in a lot of consumers mind with the Gorilla Glass, a uniquely durable kind of glass.

They have developed a fiber that is suitable for installing the last stretch to the consumer, tolerating more bending than other fibers.

Their unique and innovative products, targeted at a sort of niche in the tech industry, will probably secure them some nice margins and not too tough competition. They are experiencing some growth and might continue growing with the growth in smartphones, tablets and fiber to the home.

Besides being relatively cheap, they also pay a decent dividend of 2.8% at a reasonable payout ratio (28%). And they have loads of cash to weather harsh times.

With the explosive growth of smartphones worldwide, many investors thought they would ride Corning's dominant cover glass to massive investment returns. That hasn't played out yet, as mobile growth has failed to offset declines in the company's core business. In this brand new premium research report on Corning, our analyst walks through the business, as well as the key opportunities and risks facing it today. Click here to claim your copy.

The article Why Corning Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends 3M and Corning. The Motley Fool owns shares of Corning. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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