3 Niche Manufacturers Tapping Into Specialized Demand

NYSE: GLW | Corning Inc. News, Ratings, and Charts

GLW – Niche manufacturers are carving a significant space in the global economy by addressing specific demand for customized solutions. Amid this backdrop, you might consider tapping into three niche manufacturers: Corning Inc. (GLW), Littelfuse (LFUS), and Watts Water Technologies (WTS). Continue reading….

Unlike large-scale manufacturers catering to mass markets, niche players focus on producing specialized, tailored products. This industry is poised to benefit from improving supply chains, resulting in easier availability of raw materials and faster deliveries.

Given this positive sentiment, it might be wise for investors to consider investing in quality industrial manufacturing stocks Corning Incorporated (GLW), Littelfuse, Inc. (LFUS), and Watts Water Technologies, Inc. (WTS), which are driving both innovation and economic growth.

As per the Deloitte report, this fiscal year 2024, investment in U.S. manufacturing has led to longer-term growth. There have been 54 new clean-technology-manufacturing facilities announced during the year through September, representing over $15 billion in investment, which is expected to create more than 15,000 new jobs.

One of the major growth drivers for niche manufacturing is technological advancement. By incorporating automation, AI, and 3D printing into production processes, these manufacturers can meet complex requirements while maintaining efficiency and scalability.

According to an industrial outlook survey, approximately 86% of manufacturing executives responded that smart factories will be one of the main competitive advantages in the next five years.

The global smart manufacturing market is estimated to reach $479.17 billion by 2029, exhibiting a CAGR of 15.5%. Therefore, the outlook for niche manufacturing remains optimistic, with rising demand in industries that require specialized expertise.

Now, let’s take a closer look at the fundamentals of the three Industrial – Manufacturing stocks, beginning with the third choice.

Stock #3: Corning Incorporated (GLW)

GLW is a materials science technology and innovation company. The company operates through five segments: Optical Communications; Display Technologies; Specialty Materials; Environmental Technologies; and Life Sciences.

On October 28, AT&T Inc. (T) and GLW together signed a multi-year purchase agreement. Under this agreement, GLW will provide next-generation fiber, cable, and connectivity solutions to support the expansion of AT&T’s fiber network and help bring high-speed internet.

On August 1, GLW and Lumen Technologies, Inc. (LUMN) announced a supply agreement on next-generation fiber-optic cable to support data center AI demands. With this agreement, Lumen reserves 10% of GLW’s global fiber capacity for each of the next two years to interconnect AI-enabled data centers. This agreement makes it GLW’s first outside-plant deployment new gen-AI fiber and cable system.

For the third quarter of 2024, which ended on September 30, GLW’s net sales increased 6.9% year-over-year to $3.39 billion. The company’s operating income for the quarter amounted to $302 million, representing an increase of 28% year-over-year.

Its core net income stood at $465 million, up 20.5% year-over-year, while its core earnings per share rose 20% from the prior year’s quarter to $0.54. Also, GLW’s adjusted free cash flow grew 18.7% from the year-ago value to $553 million.

The consensus revenue estimate of $3.76 billion for the fiscal fourth quarter (ending December 2024) represents a 14.8% increase year-over-year. The consensus EPS estimate of $0.56 for the current quarter indicates a 42.5% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus revenue estimates in each of the trailing four quarters.

The stock has gained 69.1% over the past year and 48.2% over the past nine months to close the last trading session at $47.84.

GLW’s POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

GLW has an A grade for Growth and a B for Momentum and Sentiment. It is ranked #13 out of 35 stocks in the B-rated Industrial – Manufacturing industry. Click here to see the additional ratings for GLW (Value, Stability, and Quality).

Stock #2: Littelfuse, Inc. (LFUS)

LFUS designs, manufactures, and sells electronic components, modules, and subassemblies worldwide. The company operates through three segments: Electronics; Transportation; and Industrial.

On October 22, 2024, LFUS announced the launch of RCMP20 Residual Current Monitor Series for Mode 2 and Mode 3 EV charging stations. This launch features the largest Current Transformer (CT) aperture in the industry, and the RCMP20 Series enhances LFUS’ growing portfolio of EV infrastructure solutions.

In the fiscal third quarter that ended on September 30, 2024, LFUS’ total net sales amounted to $567.39 million, while its Industrial segment net sales grew 6.6% from the same period last year to $91.82 million. The company’s net income came in at $58.1 million, up marginally year-over-year, and its EPS stood at $2.32, representing a marginal increase year-over-year.

Street expects LFUS’ revenue for the fiscal first quarter (ending March 2025) to increase marginally year-over-year to $543.47 million. Its EPS for the same period is expected to register a 16.5% growth from the prior year, settling at $2.05. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters, which is promising.

LFUS shares have surged 43.6% over the past year and 34.5% over the past nine months to close the last trading session at $238.66.

LFUS’ bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

It also has a B grade for Stability, Sentiment, and Quality. Within the same B-rated industry, it is ranked #8. Click here to see LFUS’ ratings for Growth, Value, and Momentum.

Stock #1: Watts Water Technologies, Inc. (WTS)

WTS is a global supplier of products, solutions and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial, industrial, and residential markets. 

On October 28, demonstrating its commitment to returning value to shareholders, the company declared a quarterly dividend of $0.43 per share, up 35% from the previous quarter, payable to its shareholders on December 13, 2024.

WTS pays an annual dividend of $1.72, which translates to a yield of 0.83% at the current share price. Its four-year average dividend yield is 0.72%. Moreover, the company’s dividend payouts have increased at an impressive CAGR of 17.3% over the past three years.

WTS’ net sales for the third quarter (ended September 29, 2024) increased 7.8% year-over-year to $543.60 million. Its gross profit stood at $257.10 million, indicating a 9.7% growth from the prior-year quarter.

Its net income rose 5% from the year-ago value to $69.10 million, while its net income per share stood at $2.06, up 5.1% year-over-year. Also, the company reported free cash flow of $204.20 million, indicating a 12.3% growth from the prior year’s quarter.

Analysts expect WTS’ revenue and EPS for the current year (ending December 2024) are expected to grow by 9.4% and 5.7% from the prior year to $2.25 billion and $8.74, respectively.

Over the past three months, the stock has surged 13.7%, closing the last trading session at $210.80.

It’s no surprise that WTS has an overall rating of B, equating to a Buy in our POWR Ratings system. It has a B grade for Momentum and Quality. Out of 35 stocks in the Industrial – Manufacturing industry, WTS is ranked #7.

Beyond what is stated above, we’ve also rated WTS for Growth, Value, Stability, and Sentiment. Get all WTS ratings here.

What To Do Next?

Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


GLW shares were trading at $48.45 per share on Friday afternoon, up $0.61 (+1.28%). Year-to-date, GLW has gained 63.84%, versus a 26.42% rise in the benchmark S&P 500 index during the same period.


About the Author: ShreyaRathi


More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GLWGet RatingGet RatingGet Rating
WTSGet RatingGet RatingGet Rating
LFUSGet RatingGet RatingGet Rating
TGet RatingGet RatingGet Rating
LUMNGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investors: Are You Ready for 2025?

Its easy to get caught up in the celebration of new highs above 6,000 for the S&P 500 (SPY). Yet Steve Reitmeister warns about tougher sledding for investors in 2025. Read on for the full story...

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Stock Market Outlook: Is Inflation Still Too Sticky?

Investors need to wake up and smell the inflation. That’s right even as we are celebrating new highs for the S&P 500 (SPY), inflation has become sticky once again which may delay the Fed’s next rate cut. And yes...that is not good news for stocks. Get the full story below...

Read More Stories

More Corning Inc. (GLW) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All GLW News