Is Corning Stock Outperforming the S&P 500?

With a market cap of $40.5 billion, Corning Incorporated (GLW) is a leading innovator in materials science, specializing in glass, ceramics, and optical physics. The company operates across five key segments: Optical Communications; Display Technologies; Specialty Materials; Environmental Technologies; and Life Sciences, serving industries such as telecommunications, consumer electronics, automotive, and scientific research.

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Corning fits this criterion perfectly. Headquartered in Corning, New York, Corning is known for its advanced glass substrates, optical fibers, and laboratory products used worldwide.

Despite a 14.1% decline from its 52-week high of $55.33, shares of the specialty glass maker have risen 1.6% over the past three months, slightly outperforming the broader S&P 500 Index’s ($SPX) 4.4% decline over the same time frame. 

In the longer term, GLW stock is down marginally on a YTD basis, which is a less pronounced decline than SPX’s 4.5% dip. Moreover, shares of Corning have surged 46.2% over the past 52 weeks, outperforming the 9% return of the SPX over the same time frame.

Despite recent fluctuations, GLW has been trading mostly above its 50-day and 200-day moving averages since last year.

Despite Corning reporting better-than-expected Q4 2024 adjusted EPS of $0.57 and revenue of $3.9 billion, shares fell 2.8% on Jan. 29. The launch of China’s DeepSeek R1 AI model, reportedly more efficient than OpenAI’s, raised fears of reduced long-term demand for Corning’s optical fiber products used in AI data centers, despite Optical Communications sales jumping 51% to $1.4 billion. Additionally, the Federal Reserve held interest rates steady, fueling worries that fewer or no cuts could hurt tech stocks.

As a result, these macro and AI-related concerns overshadowed Corning’s strong quarter and bullish Q1 2025 outlook of 10% sales growth to $3.6 billion and EPS of $0.48 - $0.52.

GLW has outperformed its rival, TE Connectivity plc (TEL), which has gained 4.9% over the past 52 weeks. However, on a YTD basis, TE Connectivity saw a 2.7% rise, outpacing Corning.

Due to Corning’s outperformance, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 11 analysts covering the stock, and as of writing, GLW is trading below the mean price target of $57.33.