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Goodyear Tire & Rubber (GT) has drawn fresh attention after naming David Cichocki as Managing Director, Americas, and Chief Sales Officer, Americas Consumer, a leadership change that could influence how investors view the stock.
See our latest analysis for Goodyear Tire & Rubber.
The latest leadership change comes as the share price sits at US$9.09. A 90-day share price return of 27.13% contrasts with a 1-year total shareholder return decline of 3.09%, suggesting that near term momentum has picked up while longer term returns remain weak.
If this kind of management reset has you reassessing the auto space, it could be a useful moment to scan auto manufacturers for other potential ideas in the sector.
With the shares at US$9.09, sitting close to analyst targets yet flagged by some models as trading below intrinsic value, the real question is whether Goodyear is still cheap or if the market already sees the next chapter coming.
Against the last close at US$9.09, the most followed narrative points to a fair value of about US$9.51, suggesting a small valuation gap that hinges on how future earnings and margins play out.
The analysts have a consensus price target of $11.071 for Goodyear Tire & Rubber based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $15.0, and the most bearish reporting a price target of just $9.0.
Curious what justifies a higher value for a business where revenues and margins are not projected to surge? The narrative leans on specific earnings paths, subtle margin shifts and a future profit multiple that is different from today. The full breakdown shows exactly which cash flow assumptions and discount rate pull that fair value up.
Result: Fair Value of $9.51 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the story could change quickly if low cost import pressure intensifies or if tariff and trade uncertainty continues to disrupt volumes, pricing and margin expectations.
Find out about the key risks to this Goodyear Tire & Rubber narrative.
If you see the story differently or prefer to base your view on your own checks, you can pull the same data, test your assumptions and Do it your way in just a few minutes.
A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
If Goodyear has you thinking more broadly about where to put your money to work, do not stop here. Widen your watchlist with a few focused stock ideas.
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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