Financial Trading Blog
Stock of the day 16/02/2015 – Goodyear Tire & Rubber Co
2014 was an overall positive year for the company, however less robust than it would have hoped after the rapid gains Goodyear made in 2013. The company grew from $13.09 at the start of 2013 to open 2014 at $23.73, an impressive $10 of growth that Goodyear couldn’t get near in the past 12 months. A strong fourth quarter for 2013 last February saw the stock increase to around $28; it would then spend much of the first half of the year flitting between around that level.
However between September and mid-November the company saw big losses, and by the market-wide slump in mid-October was down to $18.89. Yet as the US markets surged in the final months of 2014, so too did Goodyear, culminating with a high of $28.86 at the very end of the year before opening 2015 at $28.77. It quickly beat its 2014 high by reaching $28.97 in the first week of trading; however, a 13% drop in mid-January saw share prices fall to $26.06 after the company cut its Q4 and full year guidance, and as of last Friday the stock is trading at $25.89.
The most significant piece of news coming out from Goodyear of late is the announcement that it intends to debut an online tire buying and installer program. The company will be the first major tire-maker to do so, and any elaborations on this scheme tomorrow will likely interest investors. The move to e-commerce has been slow for the motor industry so 2015 may see Goodyear act as a tester-case for the rest of the sector.
As mentioned Goodyear’s Q3 results weren’t great, as the company’s revenue slipped to $4.7 billion from the previous year’s $5 billion. The average forecast for Q4 revenue is $4.37 billion, whilst earnings per share are forecast to be $0.58. However, analysts are still bullish on the stock, giving a consensus rating of ‘buy’ due to its relative cheapness, with a target of $28.88, a few dollars above its current trading price.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
