Back to top

Image: Bigstock

Goodyear (GT) Stock Moves -1.91%: What You Should Know

Read MoreHide Full Article

Goodyear (GT - Free Report) closed at $13.32 in the latest trading session, marking a -1.91% move from the prior day. This move was narrower than the S&P 500's daily loss of 3.63%. Elsewhere, the Dow lost 2.77%, while the tech-heavy Nasdaq lost 0.19%.

Prior to today's trading, shares of the tire maker had lost 4.97% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 14.49% and the S&P 500's loss of 6.15% in that time.

Investors will be hoping for strength from Goodyear as it approaches its next earnings release, which is expected to be May 6, 2022. In that report, analysts expect Goodyear to post earnings of $0.18 per share. This would mark a year-over-year decline of 58.14%. Meanwhile, our latest consensus estimate is calling for revenue of $4.89 billion, up 39.37% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.33 per share and revenue of $20.6 billion. These totals would mark changes of +11.48% and +17.88%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Goodyear. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 6.05% lower. Goodyear is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Goodyear is currently trading at a Forward P/E ratio of 5.83. For comparison, its industry has an average Forward P/E of 8.86, which means Goodyear is trading at a discount to the group.

The Rubber - Tires industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


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

Published in