Stock performance snapshot and recent context
Goodyear Tire & Rubber (GT) has been trading under pressure recently, with the share price at US$6.65 after a 1 day return of about a 0.9% decline and a month return near a 16% decline.
See our latest analysis for Goodyear Tire & Rubber.
The recent 30 day share price return of about a 16% decline and 90 day share price return of about a 25% decline suggest momentum has been fading. This aligns with the 1 year total shareholder return of about a 35% decline and 5 year total shareholder return of about a 63% decline.
If this kind of pullback has you reassessing your options, it can be useful to see where capital is flowing into future facing themes such as 28 power grid technology and infrastructure stocks
With Goodyear reporting annual revenue of US$18,280.0m alongside a net loss of US$1,721.0m and trading at a discount to some intrinsic and analyst estimates, investors may need to consider whether this weakness represents a genuine opportunity or whether the market is already factoring in future growth.
Most Popular Narrative: 31.8% Undervalued
Goodyear Tire & Rubber's most followed narrative places fair value at about $9.76 per share, compared with the recent close of $6.65. This is a sizeable gap for investors to weigh against the company’s current losses and muted revenue growth outlook.
The asset sales (OTR, Dunlop, and Chemical business) and strong progress on deleveraging are expected to yield a significantly improved balance sheet and lower interest burden, enhancing Goodyear's ability to reinvest in growth, drive earnings accretion, and reduce financial risk.
Analysts are effectively betting that flat revenue, rising margins, and a future earnings multiple closer to the broader auto components group can support that valuation. Want to see exactly how those moving parts, from earnings recovery to share count changes and discount rate assumptions, are stitched together in the full narrative?
Result: Fair Value of $9.76 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to weigh the pressure from lower-cost rivals and import competition, along with tariff and input cost headwinds that could squeeze margins.
Find out about the key risks to this Goodyear Tire & Rubber narrative.
Next Steps
With sentiment clearly mixed, and both risks and potential rewards in play, it makes sense to review the data yourself and act promptly to form your own view using the 4 key rewards and 1 important warning sign
Looking for more investment ideas?
If this Goodyear update has you curious about what else might be worth a closer look, you could broaden your watchlist with a few targeted stock ideas picked by data, not hype.
- Target potential mispricings by scanning companies that combine quality with attractive valuations through the 62 high quality undervalued stocks.
- Prioritise resilience by reviewing companies that score well on balance sheet strength and fundamentals with the solid balance sheet and fundamentals stocks screener (39 results).
- Hunt for less crowded opportunities by checking a screener containing 25 high quality undiscovered gems before the wider market catches on.
This 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.
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