Shares of the Goodyear Tire & Rubber Company (NASDAQ:GT) currently hold an average recommendation of “Hold” from twelve research firms, according to MarketBeat Ratings. The analysts’ outlook includes two sell ratings, five hold ratings, three buy ratings, and two strong buy ratings. The average price target for the stock among these brokerages stands at $10.85, reflecting a cautious optimism in the market.
Recent reports from various brokerages have further shaped investor sentiment around Goodyear’s stock. Zacks Research upgraded the company from a “hold” rating to a “strong buy” in a note released on Thursday. Conversely, Morgan Stanley raised their price target from $6.88 to $7.30 while maintaining an “underweight” rating in their report on November 28. Weiss Ratings affirmed a “sell (d-)” rating on December 29. Meanwhile, Citigroup adjusted their price objective from $10.00 to $9.00 and rated the stock as “neutral” on November 11. Additionally, JPMorgan Chase & Co. reduced their price target from $15.00 to $14.00, but maintained an “overweight” rating in a note issued on October 20.
Performance and Financial Overview
As of Friday, Goodyear’s stock opened at $9.23. The stock has shown a 50-day moving average of $8.43 and a 200-day moving average of $8.72. Over the past year, the stock has fluctuated between a 52-week low of $6.51 and a high of $12.03. The company boasts a market capitalization of $2.64 billion, with a negative P/E ratio of -1.52 and a P/E/G ratio of 0.90. Goodyear’s financials indicate a quick ratio of 0.71, a current ratio of 1.27, and a debt-to-equity ratio of 2.29.
Goodyear recently released its quarterly earnings report on November 3, 2023, revealing earnings of $0.28 per share, surpassing analysts’ expectations of $0.16 by $0.12. The company reported revenue of $4.65 billion, slightly below the consensus estimate of $4.67 billion. Although revenue has decreased by 3.7% compared to the same quarter last year, the company achieved a positive return on equity of 2.97%, despite a negative net margin of 9.56%.
Analysts are forecasting that Goodyear Tire & Rubber will generate earnings of approximately $1.50 per share for the current fiscal year.
Company Background
Founded in 1898 by Frank Seiberling in Akron, Ohio, the Goodyear Tire & Rubber Company has established itself as a prominent player in the tire manufacturing industry. With a legacy of innovation spanning over a century, Goodyear is recognized for its engineering expertise and dedication to quality. The company specializes in designing, producing, and distributing tires for a diverse range of markets, including passenger vehicles, commercial trucks, off-the-road vehicles, aircraft, and specialty applications.
As the market continues to evolve, Goodyear remains focused on advancing tire technology, moving from early pneumatic designs to modern high-performance and fuel-efficient solutions.
Investors and analysts will continue to monitor Goodyear’s performance closely, particularly as the company navigates the complexities of the current economic landscape.
