The objective of the collaboration is to tap into a wide range of connectivity inventions and improve their availability to systems operators across the whole world.
Notably, the deal marks an end to the pending patent infringement between the two companies over Corning’s EFC line of coaxial cable connectors and related court proceedings.
However, the terms of the agreement have not been disclosed by the companies.
Corning Incorporated Price and Consensus
What Does This Mean For Corning?
As more and more devices get interconnected, demand for higher bandwidth as well as cloud computing will witness exponential growth. Per an IDC report, by 2020 the Internet of Things (IoT) market is projected to be worth $1.7 trillion with 30 billion connected “things”.
Given the huge opportunity the segment offers, broadband connectivity technology that is an enabler for the segment is likely to witness steady growth too, which translates to decent growth prospects for Corning.
Stock Performance Overview
Shares of Corning have outperformed the broader Zacks Communications Components industry over the last 12 months. While the industry generated a positive return of 41.4%, the stock gained 44.6%.
The outperformance of the stock could be primarily attributed to solid performance from the Display technologies and Optical Communications segment. We believe the company remains focused on expanding its footprint in the automotive market, which will drive top-line growth going ahead.
At present, Corning sports a Zacks Rank #1 (Strong Buy).
A couple of other stocks worth considering in the broader technology space are Acacia Communications, Inc. ACIA and Facebook, Inc. FB, each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the consensus estimate for Acacia’s current year has improved to $2.33 from $2.31 over the last 60 days.
Similarly, the consensus estimate for Facebook’s current year has improved to $3.39 from $3.30 over the last 60 days.
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