Goodyear Tire (GT, $15.23) gets Nomura's bullish coverage
Goodyear Tire got a bullish look from analysts at Nomura analysts.
The note, in which Nomura initiated coverage of the auto tyre manufacturing company, mentions a buy rating and a $20 target price, which represents a potential upside of more than 30%.
Nomura analyst Anindya Das cited the stock’s attractive valuation, the company's market share of the aftermarket tire business, and an expected increase in profitability in 2020 amid restructuring of its U.S. plants. Das hinted that Goodyear is a defensive stock with inexpensive valuation that should do well when the economic growth outlook for 2020 is what Das called “somewhat muddled".
Goodyear has upped the ante on automation at its German plants, while shifting production towards higher-cost, premium tires. The restructuring will slash 1,100 jobs, and is expected to boost earnings by $60 million to $70 million by 2022, as indicated by Goodyear.
Earlier this year, Goodyear announced plans to restructure its U.S. manufacturing plants, based on its similar initiative in Germany.
GT saw its Stochastic Oscillator leaves the overbought zone
The Stochastic Oscillator for GT moved out of overbought territory on May 08, 2025. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 66 similar instances where the indicator exited the overbought zone. In of the 66 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on GT as a result. In of 99 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GT turned negative on May 09, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GT broke above its upper Bollinger Band on April 03, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
GT moved above its 50-day moving average on April 11, 2025 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for GT moved above the 200-day moving average on April 17, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GT advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 178 cases where GT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.825) is normal, around the industry mean (12.384). GT's P/E Ratio (769.231) is considerably higher than the industry average of (44.155). GT's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (0.991). GT has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.029). P/S Ratio (0.192) is also within normal values, averaging (20.844).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a manufacturer of tires and other rubber products
Industry AutoPartsOEM