Wednesday, April 6, 2011

Time to Buy Corning (GLW)?

With the energy sector and commodity companies attracting a lot of attention from investors recently, some companies in the tech sector have been trading at low valuations, offering what looks like excellent buying opportunities, like with Corning Incorporated (NYSE:GLW).

Earnings estimates for Corning are a little over $2 a share for 2011, and even more in 2012, so the PE ratio is about 10 on these estimates.

The shares have been trading in a range from $15.45 to $23.43 in over the past 52 weeks. The 50 day moving average is $21.87 and the 200 day moving average is $18.93.

Because Corning's shares have been under pressure recently and are trading below the 50 and 200 day moving averages, buying incrementally in order to take advantage of expected dips would be a good strategy.

With the moving average of about $19 a share, that would also be a place to look to enter at for a full position.

Corning was trading at $20.49, gaining $0.09, or 0.44 percent, as of 1:54 PM EDT.

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