One of the best ways to use the Zacks Rank is to find a strong stock in a strong industry. We do this by looking at earnings estimate revisions coming from analysts. If analysts are out there increasing their earnings outlook for an entire industry, then finding the strongest stock in that industry gives you a great chance of success. Now flip that on its head. If you find the weakest industries out there from an earnings trend standpoint, then you can find stocks you should probably avoid loading the boat on.
Today's Bull of the Day is one of these stocks that's in an industry which has had a recent stretch of very negative earnings revisions. The industry is the Rubber - Tires industry which ranks as the lowest industry in our Zacks Industry Rank, 255 out of 255. It's Zacks Rank #5 (Strong Sell) Goodyear Tire and Rubber Company (GT). The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. It offers various lines of rubber tires for automobiles, trucks, buses, aircrafts, motorcycles, earthmoving and mining equipment, farm implements, industrial equipment, and various other applications under the Goodyear, Dunlop, Kelly, Debica, Sava, Fulda, and various other Goodyear owned house brands, as well as under the private-label brands.
The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions recently. Over the last sixty days, three analysts have dropped their estimates for the current quarter while four analysts have cut their current year estimates. The negative revisions have brought the Zacks Consensus Estimate for the current quarter down from $1.15 to 73 cents while the current year number has been cut from $3.46 to $2.88.
As I mentioned before, the Zacks Industry Rank for the Rubber - Tire industry is dead last of all the 255 industries we rank. Industry components include Zacks Rank #4 (Sell) stocks Bridgestone (BRDCY) and Michelin (MGDDY).
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportMichelin (MGDDY): Free Stock Analysis ReportThe Goodyear Tire & Rubber Company (GT): Free Stock Analysis ReportBridgestone Corp. (BRDCY): Free Stock Analysis ReportTo read this article on Zacks.com click here.