In the latest trading session, Goodyear (GT) closed at $11.14, marking a +1.46% move from the previous day. This change outpaced the S&P 500’s 0.08% loss on the day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the tire maker had lost 15.6% in the past month. In that same time, the Auto-Tires-Trucks sector lost 3.14%, while the S&P 500 lost 6.03%.
Wall Street will be looking for positivity from Goodyear as it approaches its next earnings report date. The company is expected to report EPS of $0.43, up 34.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.08 billion, up 27.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $20.41 billion. These totals would mark changes of +6.22% and +16.77%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Goodyear. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Goodyear is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Goodyear currently has a Forward P/E ratio of 4.95. This represents a discount compared to its industry’s average Forward P/E of 8.83.
The Rubber – Tires industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report
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