How You Can Profit From the Mobile Revolution Without Picking Sides: QUALCOMM, Inc. (QCOM), Dolby Laboratories, Inc. (DLB), Corning Incorporated (GLW)

And last but not least… The screen

I have already written a good amount about Gorilla Glass maker  Corning Incorporated (NYSE:GLW), but I am deeply convinced that they are discounted unfairly by the market. The company dominates the display market for mobile with its glass products, and its signature gorilla glass can be found in almost any mobile device with touch screen capabilities from the iPad to the Kindle Fire HD. Chances are if you are scrolling through your smartphone to check a text message you are touching the company’s gorilla glass. With Windows 8 sparking a brigade of touch-enabled devices, and  Google Inc (NASDAQ:GOOG) deciding to follow suite with its Chromebook Pixel, the catalysts for the company are mounting, especially in the growth department as the company is introducing other innovative products such as its bendable Willow Glass.

The bottom line

Not only will the three aforementioned companies profit from the mobile revolution no matter what the hottest selling brand is, they are in great shape financially as well.

• Qualcomm is sitting on over $13 billion in cash with almost no debt.
• Dolby has about $435 million in cash with no debt (keep in mind the company’s smaller market cap)
• Corning is holding $3.5 billion in debt, but can easily cover this with over $6 billion in cash

Each of these three companies are also reasonably valued to undervalued. Corning Incorporated (NYSE:GLW) is probably the “cheapest” carrying a P/E of only around 11 and trading below its book value. The company also pays out a decent dividend that yields almost 3%. Dolby is trading at about 14 times earnings. Qualcomm is trading at 17 times earnings, but carries a forward P/E of only around 13, and if they continue on the same profit-generating path they have been on lately, they should be able to easily meet, or perhaps even beat, analysts expectations– making them seem pretty cheap in retrospect. When it comes down to it, all three of these companies will give an investor a way to profit from the mobile revolution no matter what brand is selling best or what the the hottest mobile gadget on the market is.

All financial data and company profiles obtained from Yahoo Finance

The article How You Can Profit From the Mobile Revolution Without Picking Sides originally appeared on Fool.com and is written by Joseph Harry.

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