Shares of Corning Incorporated GLW have surged 44% over the past year, led by improved market demand across its portfolio on the back of a flexible business model and secular drivers of the fiber optics business. Earnings estimates for 2025 have increased 9.9% over the past year while the same for 2026 is up 16.2%, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Business Restructuring Conducive to GLW Growth
Designed to unlock opportunities for valuable synergies, Corning’s operating structure has been reorganized to align executive management and business teams around five Market-Access Platforms (MAPs) — Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display. Corning has a leadership position in each of these markets, which, along with focused marketing efforts, has proved conducive to growth. In addition, the reorganization has increased efficiency by creating the opportunity to reuse assets and capabilities developed for customers in one market ecosystem to serve customers in another.
GLW’s Portfolio Strength Lends Support
Corning is benefiting from improved demand and commercialization of its innovations. Its capabilities are becoming increasingly vital to diverse industries. The fiber optic solutions business is likely to be the key growth driver for Corning, aided by the increasing use of mobile devices that require efficient data transfer and networking systems. Supporting this trend is the proliferation of clouds, resulting in increased storage and even virtual computing. Since both consumers and enterprises are using networks more extensively and the data thus generated is increasingly being used to train artificial intelligence (AI) models, there is tremendous demand for quality networking.
Moreover, data consumption patterns are changing rapidly, with an increasing propensity to consume more video content, which is creating the need for faster data transfer. Since optical networks are more efficient and most existing networks are copper-based, the demand for optical solutions is particularly strong. Corning offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. The growing adoption of innovative optical connectivity products for generative AI applications is expected to be another essential growth driver in the Optical Communication segment.
Focus on Innovative Products: GLW’s X-Factor
Corning continues to focus on developing state-of-the-art cover materials, which have been deployed on more than 8 billion devices. Samsung has opted to deploy Corning Gorilla Armor cover material for its latest Galaxy S24 Ultra devices. It is the most scratch-resistant and optically advanced Gorilla Glass yet. The solution brings an enhanced visual experience with unparalleled durability to Samsung’s newest flagship smartphone.
The company has launched an advanced cellular indoor solution dubbed Everon 5G Enterprise Radio Access Network. The latest addition to Corning’s Everon portfolio efficiently supports multiple mobile operators over a common network. This marks a major shift from legacy solutions that deliver cellular connectivity for only one operator at a time. The solution lowers the cost of ownership by approximately 50% and reduces installation time by up to 75%. Owing to its capability of delivering reliable cellular coverage in high-density environments, it has multiple use cases in hospitals, hotels, airports and beyond.
Corning also aims to capitalize on the evolving needs of global automakers. It has collaborated with AUO Corporation to facilitate the development of large-format curved automotive display modules utilizing Corning ColdForm technology. Corning’s solution enables AUO to shape car displays at room temperature, offering a cost and energy-efficient alternative to legacy hot-forming methods, with the potential to establish it as a major player in advancing automotive glass solutions.
Backed by these solid growth drivers and long-term earnings growth expectations of 14.9%, GLW stock appears poised for further price appreciation.
Other Key Picks
Arista Networks, Inc. ANET, carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista delivered an earnings surprise of 12.9%, on average, in the trailing four quarters. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Ubiquiti Inc. UI, sporting a Zacks Rank #1, offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing, while enterprise product platforms provide wireless local area network infrastructure, video surveillance products and machine-to-machine communication components. In the trailing four quarters, it delivered an earnings surprise of 7.5%.
InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 15%. IDCC is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. The company designs and develops a whole range of advanced technology solutions for use in digital cellular as well as wireless 3G, 4G, and IEEE 802-related products and networks.
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