Goodyear Tire and Rubber (GT) earnings: is the stock a good buy?

6:36 pm ET, 25 Oct 2018

Goodyear Tire & Rubber Company (GT) shares are trading at $20.02, up 1.16%. The company is announcing its quarterly earnings results on Friday before the market opens. What's driving Goodyear Tire stock price? What's GT stock price forecast?

Goodyear Tire & Rubber Company develops, manufactures, and sells tires and related products globally. The stock fell 41% in the past year. The company is focusing on launching new products with the latest technologies.

Investors are showing interest in the stock as the forward P/E ratio (5.90) is relatively low, presenting a significant valuation discount compared to its industry peers. On the other hand, some bearish investors worry about rising tariffs.  Last quarter’s revenue rose 4.1% to $3.84 billion and earnings per share came at 62 cents compared to 70 cents in the same period last year.

Third-quarter results will be released before market open on October 26, 2018. Analysts expect the company to earn 75 cents a share on revenue of $3.95 billion. The company beat analyst estimates in the previous three quarters.

What is the sentiment towards the GT stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Over the last month, The Goodyear Tire & Rubber Company (GT) returned -10.4%.

Goodyear Tire & Rubber Company (GT) forward P/E ratio is 5.9, and it’s low compared to its industry peers’ P/E ratios.

Goodyear Tire & Rubber Company (GT) short share of float is 7.51%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Goodyear Tire & Rubber Company (GT) average analyst price target ($25.86) is 25.59% above its current price ($20.59).

For the latest price and information on The Goodyear Tire & Rubber Company, please visit Finstead and search for "GT price" or "GT news".

The Goodyear Tire & Rubber Company (GT) Stock Guide

Updated at: 11:13 pm ET, 17 Sep 2020

Before we start: if you're looking for GT stock price, you can quickly find it out by visiting Finny and typing "GT quote". If you're looking for a quick scoop on GT stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "GT". You'll get all this info in one place. Or you can just type "GT news" to get the latest stock news.

Looking to buy or sell The Goodyear Tire & Rubber Company (GT)? Interested in getting the full scoop on GT, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this GT stock guide, we'll address key questions about GT, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are GT earnings?
2. What is GT stock forecast (i.e., prediction)?
3. GT buy or sell? What is GT Finny Score?
4. What are the reasons to buy GT? Why should I buy GT stock?
5. What are the reasons to sell GT? Why should I sell GT stock?
6. What are GT key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are GT earnings?

GT trailing 12-month earnings per share (EPS) is -$6.92.

Analyst Predictions

2. What is GT stock forecast (i.e., prediction)?

Based on GT analyst price targets, GT stock forecast is $11.00 (for a year from now). That means the average analyst price target for GT stock is $11.00. The prediction is based on 11 analyst estimates.

The low price target for GT is $6.00, while the high price target is $20.00.

GT analyst rating is Buy.

Analysis

3. GT buy or sell? What is GT Finny Score?

#{finnyScore:50}Our quantitative analysis shows 4 reasons to buy and 4 reasons to sell GT, resulting in Finny Score of 50.

4. What are the reasons to buy GT? Why should I buy GT stock?

Here are the reasons to buy GT stock:

5. What are the reasons to sell GT? Why should I sell GT stock?

Let's look at the reasons to sell GT stock (i.e., the bear case):

  • GT quarterly revenue growth was -41.00%, lower than the industry and sector average revenue growth (-0.18% and 0.78%, respectively). See GT revenue growth chart.
  • GT profitability is declining. The YoY profit margin change was -6.09 percentage points. See GT profitability chart.
  • GT short interest (days to cover the shorts) ratio is 2.31. The stock garners more short interest than the average industry, sector or S&P 500 stock. See GT short interest ratio chart.
  • GT cash to debt ratio is 0.13, lower than the average industry (0.14) and sector (0.13) cash to debt ratio. See GT cash to debt chart.

Key Stats

6. What are GT key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for GT:

Metrics GT
Price $7.41
Average Price Target / Upside $11.00 / 48.55%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Rubber & Plastics
Sector Consumer Cyclical
Number of Employees 64,000
Market Cap $2.25B
Forward P/E Ratio 14.88
Price/Book Ratio 0.18
Revenue (TTM) $12.71B
YoY Quarterly Revenue Growth -41.00%
Profit Margin -12.73%

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