On Oct 2, 2013, the shares of
Goodyear Tire & Rubber Company
) 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
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
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
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
Other stocks that are worth considering in the same industry
American Axle & Manufacturing Holdings Inc.
Fuel Systems Solutions, Inc.
). All these companies carry a Zacks Rank #1 (Strong Buy).
AMER AXLE & MFG (AXL): Free Stock Analysis
DENSO CORP (DNZOY): Get Free Report
FUEL SYSTEM SOL (FSYS): Free Stock Analysis
GOODYEAR TIRE (GT): Free Stock Analysis
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