Goodyear (GT) closed the most recent trading day at $10.83, moving -0.64% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.3%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Coming into today, shares of the tire maker had lost 7.78% in the past month. In that same time, the Auto-Tires-Trucks sector gained 4.85%, while the S&P 500 gained 1.51%.
Goodyear will be looking to display strength as it nears its next earnings release. In that report, analysts expect Goodyear to post earnings of $0.43 per share. This would mark year-over-year growth of 34.38%. Meanwhile, our latest consensus estimate is calling for revenue of $5.07 billion, up 27.42% from the prior-year quarter.
GT’s full-year Zacks Consensus Estimates are calling for earnings of $2.19 per share and revenue of $20.51 billion. These results would represent year-over-year changes of +4.78% and +17.37%, respectively.
It is also important to note the recent changes to analyst estimates for Goodyear. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Goodyear is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Goodyear has a Forward P/E ratio of 4.99 right now. Its industry sports an average Forward P/E of 8.58, so we one might conclude that Goodyear is trading at a discount comparatively.
The Rubber – Tires industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report
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