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On Oct 2, 2013, the shares of Goodyear Tire & Rubber Company (GT - Free Report) reached a new 52-week high of $23.40 per share. This Zacks Rank #1 (Strong Buy) stock has rising earnings and cash balance, which facilitate capital deployment.

As a result, Goodyear recently reinstated its quarterly cash dividend, which was discontinued from Dec 2002. The board also authorized a new share repurchase program worth $100 million.

Moreover, the strong earnings in the second quarter also prompted Goodyear to raise its operating income guidance for 2013 to $1.5 billion, which is the higher end of the previous guidance range of $1.4–$1.5 billion.

The company reported a 33.3% rise in earnings per share to 76 cents in the second quarter of 2013 compared with 57 cents a year ago (all excluding special items). The reported earnings outpaced the Zacks Consensus Estimate of 48 cents. Net income escalated 36.5% to $202.0 million from $148.0 million in the second quarter of 2012.

Further, Goodyear regularly launches innovative products to boost sales. The company launched the new Eagle Sport All-Season in June, which provides excellent handling and grip in all kinds of weather.

Meanwhile, the new Wrangler All-Terrain Adventure with DuPont Kevlar is a sturdy off-road tire for light trucks and SUVs. Goodyear also utilized its street technology in the racing field to create the new Eagle race tire, which fuses two different rubber compounds in a single tread to provide traction and durability.

The Zacks Consensus Estimate for Goodyear’s 2013 earnings per share currently stands at $2.41, up 28% year over year. Further, the estimate for 2014 is currently $2.79 per share, up 16% year over year.

Other stocks that are worth considering in the same industry include Denso Corp. (DNZOY - Free Report) , American Axle & Manufacturing Holdings Inc. (AXL - Free Report) and Fuel Systems Solutions, Inc. . All these companies carry a Zacks Rank #1 (Strong Buy).

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The Goodyear Tire & Rubber Company (GT) - free report >>

American Axle & Manufacturing Holdings, Inc. (AXL) - free report >>

Denso Corp. (DNZOY) - free report >>

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