Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Corning as such a stock due to the following factors:
- GLW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $123.5 million.
- GLW has traded 721,044 shares today.
- GLW traded in a range 344.6% of the normal price range with a price range of $0.95.
- GLW traded below its daily resistance level (quality: 125 days, meaning that the stock is crossing a resistance level set by the last 125 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GLW with the Ticky from Trade-Ideas. See the FREE profile for GLW NOW at Trade-Ideas
More details on GLW:
Corning Incorporated manufactures and sells specialty glasses, ceramics, and related materials worldwide. The company operates through five segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, and Life Sciences. The stock currently has a dividend yield of 1.8%. GLW has a PE ratio of 18.1. Currently there are 6 analysts that rate Corning a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Corning has been 8.1 million shares per day over the past 30 days. Corning has a market cap of $28.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.63 and a short float of 1.8% with 3.91 days to cover. Shares are up 23.6% year-to-date as of the close of trading on Friday.
rates Corning as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 26.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- GLW's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.52, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to its closing price of one year ago, GLW's share price has jumped by 45.90%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GLW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has significantly increased by 178.81% to $1,737.00 million when compared to the same quarter last year. In addition, CORNING INC has also vastly surpassed the industry average cash flow growth rate of 43.68%.
- You can view the full Corning Ratings Report.