Corning Incorporated (GLW), TE Connectivity Ltd (TEL): Should You Buy These Two Tech Stocks?

EPS growth over the past five years has come out to a rate of 15.5% — only 10.1% is expected in the next five years. Analysts still currently rate the stock a 1.9 out of 5, where 1 is a “buy.” The stock has risen to its 52-week high and still provides a strong 7.3% free cash flow yield.

Despite its bull run (54% above its 52-week low), TE Connectivity Ltd (NYSE:TEL) is surprisingly compelling from a value perspective. It trades at only 16 times trailing earnings while Amphenol Corporation (NYSE:APH) trades at 21.9 times earnings for virtually the same growth prospects. Amphenol Corporation (NYSE:APH), however, has a much cleaner balance sheet with a current ratio of 3.3. In addition, Amphenol Corporation (NYSE:APH)’s price may be the result of the craze surrounding the fiber optic market.

Conclusion

Corning Incorporated (NYSE:GLW) and TE Connectivity Ltd (NYSE:TEL) offer a nice way to gain exposure to the electronic market in general and the touchscreen & telecom markets in particular. Despite their rise, both continue to be attractive on a multiple basis compared to peers. Add in the promising growth stories, and you have two great stocks to invest in!

The article Should You Buy These 2 Tech Stocks? originally appeared on Fool.com and is written by David Gould.

David Gould has no position in any stocks mentioned. The Motley Fool recommends Corning. The Motley Fool owns shares of Corning. David is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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