Value Stocks Not for Risk-Averse Investors: Corning Incorporated (GLW), TE Connectivity Ltd. (TEL)

Fortunately, the stock is also creating value as it grows. This is indicated by its 11.3% return on invested capital, which is more than 100 bps greater than the industry average. Despite this, the stock is trading at a discount PE multiple of 15 versus the 19.6 industry average.

Closing thoughts & stock fundamentals

TE Connectivity Ltd. (NYSE:TEL) and Corning Incorporated (NYSE:GLW) are both cheap in light of rising demand from electronic producers. Corning also has a very strong balance sheet at a current ratio of 5 and little leverage at a debt-to-equity ratio of just under 0.2. With a beta of 1.45, the stock has a strong likelihood of closing its value gap quickly.

To hedge against downside, I also encourage investors to consider other electronic producers, like Samsung. This company has the greatest stability by virtue of its size and $220 billion market cap. It provides wide exposure to glass making and more direct electronic devices, so it is a good way to bet on the industry without running the risk that the entire investment will just “blow up.”

The article Value Stocks Not for Risk-Averse Investors originally appeared on Fool.com and is written by David Gould.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.