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's RSI Oscillator leaves overbought zone
The 10-day RSI Indicator for GT moved out of overbought territory on May 19, 2023. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 instances where the indicator moved out of the overbought zone. In of the 29 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 25, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on GT as a result. In of 90 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 30, 2023. 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 41 similar instances when the indicator turned negative. In of the 41 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 .
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
GT moved above its 50-day moving average on May 05, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for GT crossed bullishly above the 50-day moving average on May 08, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The 50-day moving average for GT moved above the 200-day moving average on May 30, 2023. 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 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
GT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (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 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (0.718) is normal, around the industry mean (2.917). GT's P/E Ratio (666.667) is considerably higher than the industry average of (37.211). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.508). GT has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (0.182) is also within normal values, averaging (9.242).
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 90, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of tires and other rubber products
Industry AutoPartsOEM
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GT and
Correlation & Price change
A.I.dvisor indicates that over the last year, GT has been closely correlated with LEA. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if GT jumps, then LEA could also see price increases.
