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Goodyear (GT) Outpaces Stock Market Gains: What You Should Know

·3 min read

Goodyear (GT) closed the most recent trading day at $11.06, moving +1.75% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.26%.

Prior to today's trading, shares of the tire maker had lost 6.93% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 7.74% and the S&P 500's loss of 8.32% in that time.

Wall Street will be looking for positivity from Goodyear as it approaches its next earnings report date. On that day, Goodyear is projected to report earnings of $0.43 per share, which would represent year-over-year growth of 34.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.08 billion, up 27.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $20.41 billion, which would represent changes of +6.22% and +16.77%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Goodyear. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 1.55% lower within the past month. Goodyear is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Goodyear is holding a Forward P/E ratio of 4.9. For comparison, its industry has an average Forward P/E of 10.28, which means Goodyear is trading at a discount to the group.

The Rubber - Tires industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 251, putting it in the bottom 1% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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