GT:NASDAQThe Goodyear Tire & Rubber Company Analysis
Data as of 2026-06-21 - not real-time
$6.19
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
The stock trades at $6.19, well below its 20‑day SMA of 6.02 and 50‑day SMA of 6.41, confirming a bearish trend despite a modest MACD histogram lift of 0.077. RSI sits near the midpoint at 51, offering little momentum support, while the price is perched between a clear support level of $5.52 and resistance near $6.78, leaving limited upside in the near term. Volatility is elevated at over 50% on a 30‑day basis and beta is close to 1, indicating the stock moves in line with the market but with amplified swings, and sentiment is at an "Extreme Greed" level (91.46 on the Fear‑Greed Index).
Fundamentally, Goodyear posted a 8.7% revenue decline and a net loss of $249 million in Q1 2026, with a profit margin of –11.6% and a negative ROE, yet the balance sheet shows a forward P/E of about 8 and a price‑to‑book of 0.59, suggesting the market may be over‑penalizing the company. The recent $1.05 billion senior note issuance adds debt pressure (Debt/Equity >250), but forward EPS of $0.77 and a 20% upside/downside estimate point to a potential valuation rebound. Overall, the stock appears deeply discounted relative to its assets and future earnings prospects, but the turnaround risk remains high.
Fundamentally, Goodyear posted a 8.7% revenue decline and a net loss of $249 million in Q1 2026, with a profit margin of –11.6% and a negative ROE, yet the balance sheet shows a forward P/E of about 8 and a price‑to‑book of 0.59, suggesting the market may be over‑penalizing the company. The recent $1.05 billion senior note issuance adds debt pressure (Debt/Equity >250), but forward EPS of $0.77 and a 20% upside/downside estimate point to a potential valuation rebound. Overall, the stock appears deeply discounted relative to its assets and future earnings prospects, but the turnaround risk remains high.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bearish technical positioning below key moving averages
- High short‑term volatility and limited upside to resistance
- Recent senior note issuance increasing near‑term debt load
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Undervalued valuation multiples (P/B 0.59, forward P/E ~8)
- Forward earnings estimate turning positive
- Potential recovery in automotive and commercial tire demand
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Strong global brand and diversified product portfolio
- Long‑term secular trends toward EV and high‑performance tires
- Low price‑to‑book offering a margin of safety for patient investors
Key Metrics & Analysis
Financial Health
Revenue Growth-8.70%
Profit Margin-11.64%
P/E Ratio8.1
ROE-49.98%
ROA0.94%
Debt/Equity253.06
P/B Ratio0.6
Op. Cash Flow$616.0M
Free Cash Flow$145.8M
Technical Analysis
TrendBearish
RSI51.1
Support$5.52
Resistance$6.78
MA 20$6.02
MA 50$6.41
MA 200$7.69
MACDBullish
VolumeIncreasing
Fear & Greed Index91.46
Valuation
Target Price$7.46
Upside/Downside20.47%
GradeUndervalued
TypeBlend
Risk Assessment
Beta0.98
Volatility50.17%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.