Corning Inc.GLW

Morningstar Rating

Stock Research and Analysis

by Jacqueline Zhang

Corning's performance greatly suffered in the past year as the global economic downturn dragged on demand for its consumer-oriented products. We still believe the firm's technology know-how in the glass industry should allow it to profit from ongoing Read more

Bulls Say

LCD penetration is expected to grow nicely worldwide over the next couple of years, which should drive strong demand for Corning's products. The firm's ability to create thinner and larger glass panels should support demand for ever-larger televisions and computer monitors.

Corning is well-positioned to take advantage of massive network upgrades conducted by telecom and cable carriers over the next couple of years. The growing trend of fiber-dominated networks bodes well for Corning's ClearCurve fiber-optic cables, which can eliminate much of the signal loss caused by the bending of fiber-optic cables.

Growing awareness of the environment and stricter emission regulations should lead to demand for Corning's ceramic substrates and filters. The company's products have also been included in the specifications by automobile and diesel engine manufacturers, which should provide a stream of recurring businesses for Corning. Read more

Bears Say

The company's exposure to U.S. consumers is alarming, given an expectation of slowing consumer spending in the near term. Sales of LCD TVs and monitors could fall off a cliff if customers' discretionary income continues to shrink.

Corning supplies to a highly concentrated customer base--AU Optronics AUO, its largest customer, accounted for more than 10% of its revenues. The loss of any one of its large buyers could have a significant impact on the firm's performance. Read more

Strategy

The company intends to leverage its expertise in glass production to continue to pioneer leading technologies for LCD glass panels and fiber-optic-related products for the telecommunications market. Read more

Management

While the management team has been blamed for missteps that almost brought Corning to ashes, it should also be credited for reinvigorating the company and cleaning up its financials in the past couple of years. James Houghton stepped down as CEO in Read more

Profile

Corning is the leading designer and manufacturing of glass and ceramic substrates found in liquid crystal displays, fiber-optic cables, automobiles, and laboratory products. Read more

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