Opinions
Zachary Curry 
Goodyear Tire
GT-Q
WAIT
Sep 18, 2024
Stock price when the opinion was issued
You might be interested:
Shares not performing the last year. Is disappoint with results.
Expecting more car sales to increase sales.
Electric car demand will require tires manufactures.
Will watch company very closely going forward.
Higher inflation really biting into business margins.
We reiterate GT as a TOP PICK. Recently reported earnings showed revenues up over 6% beating analyst expectations, with the American region leading the way with 12% growth, showing signs that post-pandemic driving is back on the upswing. It trades under book value and at 15x earnings. We like that cash reserves are growing while debt is aggressively retired and stock is bought back. We recommend maintaining the stop at $10, looking to achieve $13 -- upside potential of 23%. Yield 0%
(Analysts’ price target is $12.83)Our PAST TOP PICK with GT has triggered its stop at $12. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 9%, when combined with our previous recommendations.
Caters to both EV and combustion markets, but car sales have come down. Tough, super-competitive business. Restructuring, which has gone on for a while, so wait for that to finish. Write-offs during restructuring usually help companies.