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Dec 31, 2019
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Goodyear Tire (GT, $15.23) gets Nomura's bullish coverage

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.

 

Related Ticker: GT

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


GT in upward trend: price may jump up because it broke its lower Bollinger Band on November 09, 2026

GT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 29 of 37 cases where GT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 78%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where GT's RSI Indicator exited the oversold zone, 19 of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 61%.

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Moving Average Convergence Divergence (MACD) for GT just turned positive on October 22, 2026. Looking at past instances where GT's MACD turned positive, the stock continued to rise in 32 of 46 cases over the following month. The odds of a continued upward trend are 70%.

Following a +0.91% 3-day Advance, the price is estimated to grow further. Considering data from situations where GT advanced for three days, in 194 of 274 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on November 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GT as a result. In 85 of 100 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 85%.

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 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.

The Aroon Indicator for GT entered a downward trend on October 29, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding 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.

The Tickeron Valuation Rating of 27 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (0.442) is normal, around the industry mean (0.781). P/E Ratio (-0.493) is within average values for comparable stocks, (39.881). Projected Growth (PEG Ratio) (0.270) is also within normal values, averaging (1.494). Dividend Yield (0.147) settles around the average of (0.043) among similar stocks. P/S Ratio (0.084) is also within normal values, averaging (49.456).

The Tickeron Price Growth Rating for this company is 78 (best 1 - 100 worst), indicating slightly worse than average price growth. GT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 98 (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 Profit vs. Risk Rating rating for this company is 100 (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 90, placing this stock worse than average.

Notable companies

The most notable companies in this group are AutoZone (NYSE:AZO), Advance Auto Parts (NYSE:AAP), Goodyear Tire & Rubber Company (The) (NASDAQ:GT).

Industry description

OEM or Original Equipment Manufacturer of auto parts refers to the original producer of a vehicles components, and so OEM car parts are usually identical to the parts used in producing the vehicle in the first place. OEM parts tend to fit the specifications of a particular model, and their compatibility is often guaranteed by the automaker itself. OEM parts could be more expensive to buy (compared to other vendors’ products) when a consumer goes for replacement. However, increased competition from aftermarket parts/third-party vendors could, in some cases, keep EOM prices in check. The industry might progress further in adopting newer technologies like 3D printing to boost supply chain performance and quality. Aptiv PLC, Magna International Inc. and BorgWarner Inc. are major OEMs for autos.

Market Cap

The average market capitalization across the Auto Parts: OEM Industry is 4.82B. The market cap for tickers in the group ranges from 1.93K to 72.72B. ORLY holds the highest valuation in this group at 72.72B. The lowest valued company is CREVF at 1.93K.

High and low price notable news

The average weekly price growth across all stocks in the Auto Parts: OEM Industry was -3%. For the same Industry, the average monthly price growth was -8%, and the average quarterly price growth was -19%. HSAI experienced the highest price growth at 19%, while MVST experienced the biggest fall at -64%.

Volume

The average weekly volume growth across all stocks in the Auto Parts: OEM Industry was 25%. For the same stocks of the Industry, the average monthly volume growth was 49% and the average quarterly volume growth was -30%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 41
P/E Growth Rating: 47
Price Growth Rating: 64
SMR Rating: 78
Profit Risk Rating: 90
Seasonality Score: 8 (-100 ... +100)
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published General Information

General Information

a manufacturer of tires and other rubber products

Industry AutoPartsOEM

Industry
Automotive Aftermarket
Address
200 Innovation Way
Phone
+1 330 796-2121
Employees
63000
Web
https://www.goodyear.com
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