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Goodyear (GT) Gains But Lags Market: What You Should Know

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Goodyear (GT - Free Report) closed at $21.03 in the latest trading session, marking a +0.29% move from the prior day. This change lagged the S&P 500's 0.52% gain on the day. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 0.37%.

Heading into today, shares of the tire maker had lost 6.17% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 18.23% and the S&P 500's loss of 6.51% in that time.

Wall Street will be looking for positivity from Goodyear as it approaches its next earnings report date. This is expected to be February 11, 2022. In that report, analysts expect Goodyear to post earnings of $0.27 per share. This would mark a year-over-year decline of 38.64%. Our most recent consensus estimate is calling for quarterly revenue of $4.87 billion, up 33.18% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Goodyear. These revisions help to show the ever-changing nature of 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.89% higher. Goodyear currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Goodyear currently has a Forward P/E ratio of 7.36. This valuation marks a discount compared to its industry's average Forward P/E of 12.42.

The Rubber - Tires industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% 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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