Latest news with #GoodyearTire&Rubber
CNBC
22-05-2025
- Automotive
- CNBC
JPMorgan says shares of this American tiremaker can rally 60% as tariffs hit competitors
JPMorgan is bullish on Goodyear Tire & Rubber , as the company is not only executing on its transformation plans but can also serve as a hideout from tariff pressures. Analyst Ryan Brinkman assigned an overweight rating to the stock. He also lowered his year-end price target by $1 to $17, but that still suggests shares could gain 61.9% from Wednesday's close. Hype has been building around Goodyear Tire's major transformation efforts , which were revealed after activist investor Elliott Investment Management took a stake in the company in 2023. Goodyear's "Goodyear Foward" two-year transformation plan ends in December, but is ahead of schedule for its benchmarks, the company has said. The plan includes implementing top-line and cost reductions of $1.5 billion, doubling operating income margin to 10% and significantly reducing the company's debt load. GT 1Y mountain Goodyear stock performance. Brinkman thinks these changes will lead to stronger earnings and greater debt deleveraging for the company. He also highlighted that Goodyear can manage tariff pressures better than rivals given its significantly U.S. manufacturing footprint. "There is the new kicker of potentially material price and/or share gains emanating from Goodyear's best-in-class positioning vis-à-vis recently imposed tariffs," the analyst said in a Thursday note to clients. "The higher earnings in combination with lower-than-expected Goodyear Forward restructuring costs contribute to a delevering process that is being significantly catalyzed by a strategy to dispose of non-core assets, which we assess is also running ahead of plan," he added. Analysts are split on Goodyear. LSEG data shows that of the 11 analysts covering the stock, six rate it a strong buy or buy, while five have a hold rating on shares.
Yahoo
21-02-2025
- Business
- Yahoo
We Think Goodyear Tire & Rubber's (NASDAQ:GT) Healthy Earnings Might Be Conservative
The Goodyear Tire & Rubber Company (NASDAQ:GT) announced a healthy earnings result recently, and the market rewarded it with a strong uplift in the stock price. According to our analysis of the report, the strong headline profit numbers are supported by strong earnings fundamentals. Check out our latest analysis for Goodyear Tire & Rubber For anyone who wants to understand Goodyear Tire & Rubber's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by US$267m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Goodyear Tire & Rubber to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from Goodyear Tire & Rubber's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think Goodyear Tire & Rubber's earnings potential is at least as good as it seems, and maybe even better! And one can definitely find a positive in the fact that it made a profit this year, despite losing money last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you want to do dive deeper into Goodyear Tire & Rubber, you'd also look into what risks it is currently facing. When we did our research, we found 2 warning signs for Goodyear Tire & Rubber (1 makes us a bit uncomfortable!) that we believe deserve your full attention. Today we've zoomed in on a single data point to better understand the nature of Goodyear Tire & Rubber's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
