In the latest trading session, Goodyear (GT) closed at $19.92, marking a +0.66% move from the previous day. This move lagged the S&P 500's daily gain of 2.44%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.
Coming into today, shares of the tire maker had lost 6.56% in the past month. In that same time, the Auto-Tires-Trucks sector lost 18.6%, while the S&P 500 lost 9.65%.
Goodyear will be looking to display strength as it nears its next earnings release. On that day, Goodyear is projected to report earnings of $0.21 per share, which would represent a year-over-year decline of 52.27%. Meanwhile, our latest consensus estimate is calling for revenue of $4.87 billion, up 33.18% from the prior-year quarter.
Any recent changes to analyst estimates for Goodyear should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.2% higher. Goodyear is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Goodyear's current valuation metrics, including its Forward P/E ratio of 7.06. This valuation marks a discount compared to its industry's average Forward P/E of 12.22.
The Rubber - Tires industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
