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Goodyear (GT) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Goodyear (GT - Free Report) closed at $11.06, marking a +1.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.22%.

Coming into today, shares of the tire maker had lost 1.86% in the past month. In that same time, the Auto-Tires-Trucks sector lost 9.97%, while the S&P 500 lost 10.02%.

Investors will be hoping for strength from Goodyear as it approaches 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, the Zacks Consensus Estimate for revenue is projecting net sales of $5.08 billion, up 27.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $20.41 billion, which would represent changes of +6.22% and +16.77%, respectively, from the prior year.

Any recent changes to analyst estimates for Goodyear should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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, 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 #4 (Sell).

Digging into valuation, Goodyear currently has a Forward P/E ratio of 4.98. For comparison, its industry has an average Forward P/E of 10.48, which means Goodyear is trading at a discount to the group.

The Rubber - Tires industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 3% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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