Goodyear Tire & Rubber (GT) shares have seen modest movement in recent trading, catching the attention of investors tracking value and performance. The company’s stock has shifted over the past month, which has sparked curiosity about its long-term prospects.
See our latest analysis for Goodyear Tire & Rubber.
The past year has seen Goodyear Tire & Rubber navigate ups and downs, with the share price retreating by 17.26% year-to-date and a total shareholder return of -12.14% over the past twelve months. Recent momentum has been mixed, with a sharp drop in the last quarter followed by a modest recovery this week, signaling shifting sentiment around the company’s growth outlook and competitive position.
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With shares priced well below analyst targets but weighed down by sluggish growth, is Goodyear Tire & Rubber currently undervalued and primed for a rebound, or is the market accurately factoring in its future prospects?
With a narrative fair value of $10.15 against the last close price of $7.24, analysts suggest the market is significantly discounting Goodyear’s prospects and potential turnaround moves. This apparent valuation gap sets up a debate on whether the stock’s risks are already fully priced in, or if investors are overlooking key improvements on the horizon.
The company is actively focusing on premium and larger rim-size tire segments (18-inch and above), launching a significant number of new SKUs globally, which supports a richer product mix and potential for margin expansion as consumer preferences move upmarket.
Wondering what justifies this potential upside? There is a bold revenue projection, a margin play that hinges on premium product adoption, and shifting analyst confidence. Get the full story on how financial forecasts and strategic bets align to support this price target. Discover the controversial assumptions that could change the game for Goodyear.
Result: Fair Value of $10.15 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, rising competition from low-cost imports and ongoing distribution disruptions could present challenges for Goodyear’s turnaround and weigh on future earnings growth.
Find out about the key risks to this Goodyear Tire & Rubber narrative.
If you want the full picture or have a different perspective, you can dig into the details and build your own narrative in just a few minutes. Do it your way
A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include GT.
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