Shares of the Goodyear Tire & Rubber Company (NASDAQ: GT) are currently under analysis, with an average recommendation of “Hold” from twelve research firms monitoring the stock. According to MarketBeat Ratings, the company has garnered a mix of ratings: two firms issued a sell rating, five recommended holding the stock, three analysts provided a buy rating, and two assigned a strong buy rating. The average price target among these brokerages for the next twelve months stands at $10.85.
Recent reports from several brokerages highlight the varying perspectives on Goodyear’s stock. On November 3, 2023, Zacks Research upgraded the company from a “hold” to a “strong-buy” rating. In contrast, Morgan Stanley raised their price target from $6.88 to $7.30, maintaining an “underweight” rating. Meanwhile, Citigroup revised their price objective down from $10.00 to $9.00, assigning a “neutral” rating. Additionally, JPMorgan Chase & Co. adjusted their price target from $15.00 to $14.00, categorizing the stock as “overweight.”
Current Performance and Financial Overview
As of Friday, shares of Goodyear opened at $9.23. The stock has a fifty-day moving average of $8.43 and a two-hundred day moving average of $8.72. Over the past year, Goodyear’s stock reached a low of $6.51 and a high of $12.03. The company holds a market capitalization of $2.64 billion, with a price-to-earnings ratio of -1.52 and a price-to-earnings-to-growth ratio of 0.90. Its current ratios are less favorable, with a quick ratio of 0.71 and a debt-to-equity ratio of 2.29.
The company last reported its quarterly earnings on November 3, 2023. Goodyear posted earnings of $0.28 per share, exceeding analysts’ expectations of $0.16 by $0.12. The revenue for the quarter was $4.65 billion, slightly below the consensus estimate of $4.67 billion. Notably, Goodyear experienced a negative net margin of 9.56% and a modest return on equity of 2.97%. The quarterly revenue reflects a decline of 3.7% compared to the same period last year, when the company reported earnings of $0.37 per share.
Analysts forecast that Goodyear will achieve earnings per share of 1.5 for the current fiscal year, indicating a cautious outlook for the company.
Company Background and Market Position
Founded in 1898 by Frank Seiberling in Akron, Ohio, the Goodyear Tire & Rubber Company has established itself as a prominent tire manufacturer and supplier of rubber products. With over a century of innovation, Goodyear is recognized for its engineering expertise and commitment to quality standards. The company’s product range includes tires for passenger vehicles, commercial trucks, off-the-road vehicles, aircraft, and specialty applications.
Goodyear’s ongoing contributions to tire technology continue to shape the industry, from early pneumatic designs to contemporary high-performance and fuel-efficient solutions. As the company navigates a challenging market, its ability to adapt and innovate will play a crucial role in its future performance.
Investors and analysts will be closely monitoring Goodyear’s developments as the company aims to strengthen its market position in the coming months.
