Corning (NYSE:GLW) recently announced the launch of its GlassWorks AI solutions, which includes customized data center products, such as high-density cables and Multi-Mode Connector-based assemblies. This product range will help accelerate the deployment of high-density data center interconnects and aid the company’s top line growth.
Now, looking at GLW stock, we find it to be a good pick to buy at its current price of around $46. Although there are some concerns regarding Corning’s past performance, and its current valuation looks slightly high, we think the company is poised for strong growth in the coming quarters.
We arrive at our conclusion by comparing the current valuation of GLW stock with its operating performance over the recent years, as well as its current and historical financial condition. Our analysis of Corning along key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience shows that the company has a moderate operating performance and financial condition, as detailed below. That said, if you seek upside with lower volatility than individual stocks, the Trefis High-Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
How Does Corning’s Valuation Look vs. The S&P 500?
Going by what you pay per dollar of sales or profit, GLW stock looks slightly expensive compared to the broader market.
• Corning has a price-to-sales (P/S) ratio of 3.3 vs. a figure of 3.2 for the S&P 500
• Additionally, the company’s price-to-operating income (P/EBIT) ratio is 37.7 compared to 24.3 for S&P 500
• And, it has a price-to-earnings (P/E) ratio of 22.1 vs. the benchmark’s 24.3
How Have Corning’s Revenues Grown Over Recent Years?
Corning’s Revenues have declined marginally over recent years.
• Corning has seen its top line shrink at an average rate of 2.1% over the last 3 years (vs. increase of 6.3% for S&P 500)
• Its revenues have grown 4.2% from $12.6 Bil to $13.1 Bil in the last 12 months (vs. growth of 5.2% for S&P 500)
• Also, its quarterly revenues grew 16.9% to $3.5 Bil in the most recent quarter from $3.0 Bil a year ago (vs. 5.0% improvement for S&P 500)
How Profitable Is Corning?
Corning’s profit margins are around the median level for companies in the Trefis coverage universe.
• Corning’s Operating Income over the last four quarters was $1.1 Bil, which represents a moderate Operating Margin of 8.7% (vs. 13.0% for S&P 500)
• Corning’s Operating Cash Flow (OCF) over this period was $1.9 Bil, pointing to a moderate OCF-to-Sales Ratio of 14.8% (vs. 15.7% for S&P 500)
Does Corning Look Financially Stable?
Corning’s balance sheet looks strong.
• Corning’s Debt figure was $8.1 Bil at the end of the most recent quarter, while its market capitalization is $39 Bil (as of 3/28/2025). This implies a strong Debt-to-Equity Ratio of 18.9% (vs. 19.0% for S&P 500). [Note: A lower Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $1.8 Bil of the $28 Bil in Total Assets for Corning. This yields a moderate Cash-to-Assets Ratio of 6.4% (vs. 14.8% for S&P 500)
How Resilient Is GLW Stock During A Downturn?
GLW stock has fared worse than the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.
Inflation Shock (2022)
• GLW stock fell 32.4% from a high of $42.95 on 9 February 2022 to $29.02 on 2 October 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 8 July 2024
• Since then, the stock has increased to a high of $54.25 on 26 January 2025 and currently trades at around $46
Covid Pandemic (2020)
• GLW stock fell 37.3% from a high of $28.29 on 20 February 2020 to $17.75 on 23 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 16 July 2020
Global Financial Crisis (2008)
• GLW stock fell 71.8% from a high of $27.77 on 19 May 2008 to $7.82 on 20 November 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 1 March 2017
Putting All The Pieces Together: What It Means For GLW Stock
In summary, Corning’s performance across the parameters detailed above are as follows:
• Growth: Neutral
• Profitability: Neutral
• Financial Stability: Strong
• Downturn Resilience: Very Weak
• Overall: Neutral
Although Corning’s past performance has been moderate and its current valuation is somewhat high, we see compelling reasons for future growth. The recent strong performance in optical communications, boosted by the rising demand for AI technologies, combined with the introduction of a new range of products, leads us to expect significantly better sales growth for Corning in the next few years compared to the previous three. This positive outlook reinforces our view that GLW is a good buy, even with its slightly elevated valuation.
While GLW stock looks like a good pick, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
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