Q2 STOCKS TO BUY

Call Traders Flock Toward Underperforming Tech Giant

GLW just reached a more than 52-week low of $31.58

Jun 14, 2022 at 12:55 PM
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Corning Incorporated (NYSE:GLW) is an American technology company that specializes in specialty glass, ceramics, and related materials and technologies including advanced optics, primarily for industrial and scientific applications. GLW operates in various markets globally, including optical communications, mobile consumer electronics, display, automotive, and life sciences. GLW looks like its ready to snap its three-day losing streak, last seen up 0.7% at $32.17.

Corning stock has decreased about 22% year-over-year and 13% in 2022. The equity has suffered several bear gaps over the past week, but is eyeing to break the losing streak this afternoon. 

The specialized tech company now offers an attractive dividend yield of 3.38% with a forward dividend of $1.08. GLW also provides a fair valuation at a forward price-earnings ratio of 14.04 and a price-sales ratio of 1.94.

Overall, the only noticeable weak point of Corning's business fundamentals can be found on its balance sheet. GLW holds $7.73 billion in total debt and $2.02 billion in cash on their balance sheet. However, Corning stock should be a viable long-term option for value and dividend investors.

Meanwhile, in the options pits, calls look to be a favorite amongst traders. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day call/put volume ratio of 3.31 that sits higher than 98% of readings from the past year. In other words, calls are getting picked up at a quicker-than-usual clip. 

This sentiment is reflected by the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.35, which sits higher than just 27% of readings from the past year -- indicating short-term options traders are incredibly call-biased at the moment.

 

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