Corning Inc. (NYSE: GLW) has been recovering since we added to our portfolio of oversold stocks for our free newsletter subscribers, but the stock still has room to the upside and can be purchased on pullbacks. The former “Glassworks” is around $15.40 rather than the $14.54 when we sent it to our newsletter readers because we were faster to the punch than Barron’s was in its defense of the stock.
Investors need to consider that the 52-week range is $11.51 to $23.43 and the consensus analyst price target is roughly $18.30. Corning is now worth about $24.5 billion but it offers something for every type of investor. This one offers upside in technology from consumer electronics, flat panel monitors, smartphones and on. It is already a given that glass sales this holiday season will be “challenging” as we have heard about twice from Corning.
Competitors also want to take away some market share as well as they have always wanted to. Still, Corning has managed to remain the independent leader and this stock is barely above its tangible book value. It is a value stock and the company is doing what it can to keep shareholders interested even if times are not exactly booming.
Corning is the best of its class in advanced glass if you think about Gorilla Glass. The company just recently has boosted its dividend and announced an aggressive $1.5 billion share repurchase program. We would not be surprised if shares pulled back in and that is where your opportunity is. The buyback may even be a “market put option” that acts as a floor under the stock down under the $14.00 level. Insiders have been buying stock as well.
Corning always tends to get oversold during times of uncertainty and it always seems to bounce back handily. With shares barely at 9-times expected earnings, the bar is currently set very low and we look for Corning to return to the $20 area as things normalize.
This was one of seven oversold picks poised for a comeback which was offered recently to our readers who sign up for our free daily newsletter service. Each morning’s free newsletter is sent by email and includes the top news headlines, shows the top 15 or so analyst upgrades and downgrades, covers activist investor and insider trading, and offer key trading alerts for investors. Sign up in the box below.
JON C. OGG