GLW Shares Rally 18% In A Month, Now Is Not The Time To Buy The Stock

We believe there is a near-equal mix of good and bad in GLW stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive. Here is our multi-factor assessment.

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure.

Let’s get into details of each of the assessed factors but before that, for quick background: With $73 Bil in market cap, Corning provides advanced glass substrates for displays, optical fibers, cables, and equipment in display technologies, optical communications, environmental technologies, specialty materials, and life sciences industries.

[1] Valuation Looks Very High

This table highlights how GLW is valued vs broader market. For more details see: GLW Valuation Ratios

[2] Growth Is Inconsistent

• Corning has seen its top line shrink at an average rate of -0.3% over the last 3 years
• Its revenues have grown 15% from $12 Bil to $14 Bil in the last 12 months
• Also, its quarterly revenues grew 18.8% to $3.9 Bil in the most recent quarter from $3.3 Bil a year ago.

This table highlights how GLW is growing vs broader market. For more details see: GLW Revenue Comparison

[3] Profitability Appears Moderate

• GLW last 12 month operating income was $1.7 Bil representing operating margin of 12.1%
• With cash flow margin of 15.4%, it generated nearly $2.2 Bil in operating cash flow over this period
• For the same period, GLW generated nearly $819 Mil in net income, suggesting net margin of about 5.8%

This table highlights how GLW profitability vs broader market. For more details see: GLW Operating Income Comparison

[4] Financial Stability Looks Strong

• GLW Debt was $8.5 Bil at the end of the most recent quarter, while its current Market Cap is $73 Bil. This implies Debt-to-Equity Ratio of 11.7%
• GLW Cash (including cash equivalents) makes up $1.5 Bil of $29 Bil in total Assets. This yields a Cash-to-Assets Ratio of 5.2%

[4] Downturn Resilience Is Weak

GLW has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• GLW stock fell 42.5% from a high of $46.25 on 21 April 2021 to $26.59 on 27 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 9 October 2024
• Since then, the stock increased to a high of $85.34 on 6 October 2025 , and currently trades at $85.06

 
2020 Covid Pandemic

• GLW stock fell 41.6% from a high of $30.40 on 13 January 2020 to $17.75 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 27 July 2020

 
2008 Global Financial Crisis

• 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.
• However, the stock fully recovered to its pre-Crisis peak by 1 March 2017

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read GLW Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.