Once known mainly for its kitchenware, there is an outfit in upstate New York that has become a dominant provider of high technology glass products. The firm pioneered the development of fiber-optic cable.

Corning Incorporated (NYSE: GLW) is a leading producer of specialty glass and ceramics for high-technology systems. Products include glass substrates for LCD televisions, computer monitors and laptops; ceramics for catalytic converters; optical fiber, cable & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for the semiconductor, aerospace, defense, astronomy and metrology industries. 3M Corporation (NYSE: MMM) is a major competitor.

The company pleased investors last week, when management affirmed Q3 EPS guidance 34-37 cents and revenue guidance of $1.525-1.575 billion. Analysts had been expecting 36 cents and $1.55 billion. The CEO stated that LCD product shipments are on track with forecasts and noted that improved exchange rates between the yen and the dollar could add a penny to adjusted earnings per share.

The stock popped on the news and has since moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with seven "strong buys", eight "buys" and two "holds". Analysts see a 17% growth rate through the next year. The GLW P/E ratio (20.79), PEG ratio (1.26), EPS Growth rate (30.77%), Net Profit Margin (18.04%) and Return on Equity (25.59%) compare favorably with industry, sector and S&P 500 averages.

Institutions hold about 75% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past twelve months, it has traded between $18.12 and $27.25. A stop-loss of $21.70 looks good here. Note that the firm is expected to announce Q3 results in late October.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.