Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

22. Corning Incorporated (NYSE:GLW)

Consensus ROE: 17%

Number of Hedge Fund Investors in Q2 2024: 35

Corning Incorporated (NYSE:GLW) is a specialty products company that provides glass, ceramics, and other items for a variety of use cases. Some of the most well known uses of its products include display and camera cover glass for smartphones due to their scratch resistant properties. Corning Incorporated (NYSE:GLW) is one of the most diversified glass companies in the world, and it benefits from having a presence in a myriad of other industries apart from consumer electronics. These include data center communications, sunglasses, aerospace, and emissions control. The growth in data center build outs coupled with the fact that fiberglass is also growing in popularity for use within data centers can prove to be a sizeable catalyst for Corning Incorporated (NYSE:GLW). This can further help the firm’s Optical segment, which accounts for 30% of its revenue, and help management meet the firm’s Springboard Plan. Through this plan, Corning Incorporated (NYSE:GLW) hopes to have an operating margin of 20% by 2026. The only way that a manufacturing company can achieve this is through high volume shipments and price increases, which should drive Corning Incorporated (NYSE:GLW)’s hypothesis moving forward.

O’keefe Stevens Advisory mentioned Corning Incorporated (NYSE:GLW) in its Q2 2024 investor letter. Here is what the fund said:

“Corning Incorporated (NYSE:GLW), another long-time holding, announced Q2 results would come in better than anticipated due to outperformance in their optical connectivity products used for Generative AI. Corning has long been a disappointing investment; with leading-edge technology, it consistently underperforms expectations. Their “springboard” plan, which revolves around $3 billion of excess capacity, seems to be the first sign in a long time that they are ready for a surge in growth. Management has frequently discussed the potential for operating leverage in nearly every conference call, anticipating a return to normal business conditions. Margins should expand over the coming quarters, driving EPS growth. The $3B in incremental sales could be worth in excess of $900m in EBITDA.”