Goodyear Tire (GT) has seen estimates fall of late and that pushed it down to a Zacks Rank #5 (Strong Sell). The estimates from a wide range of brokerages come in to Zacks and we feed them into an algo that shows which stocks have the best postiive estimate revisions and which ones have the worst revisions. Among those with the more negative revisions is GT and that is why it is the Bear of the Day.
Not all car companies are seeing slowing demand, Tesla (TSLA) has huge demand for its Model 3 car but that is another story.( https://www.zacks.com/commentary/168627/why-tesla-shorts-are-doomed and this piece come to mind: https://www.zacks.com/commentary/166108/bull-of-the-day-tesla-tsla )
GT makes tires, and new car demand is falling. Analysts see that and have moved their earnings estimates lower.
I see the Zacks Consensus Estimate has moved lower for the current quarter over the last 60 days. The number moved from $0.74 to $0.59. That same type of move is present in the next quarter as well.
The Zacks Rank focuses on the annual number a little more so let's look there.
I see a move from $3.65 to $3.46 over the last 60 days. The 2019 number has moved from $4.38 to $4.15 over that same time period.
So while estimates are moving lower, there is still earnings growth ahead for GT.
We get auto sales data later this week, that might be the data points we need to see if you believe that it is time to buy the dip. If sales disappoint, then GT is likely to continue to move lower.
The Goodyear Tire & Rubber Company Price and Consensus
The Goodyear Tire & Rubber Company Price and Consensus | The Goodyear Tire & Rubber Company Quote
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