The Goodyear Tire & Rubber Company

The Goodyear Tire & Rubber Company (NASDAQ: GT) is a leading global tire company with 52 manufacturing facilities in 23 countries worldwide. It is currently focused on innovating and developing state-of-the-art products and services through its two innovation centers in Akron, Ohio, and Colmar-Berg, Luxembourg.

Key Highlights

• GT generated USD 4.9 billion in revenues in Q3FY21 (ended September 30, 2021), up 42% from the prior corresponding period, aided by higher sales volume, the Cooper Tire merger, and improved price/mix.
• Its Q3FY21 net income amounted to USD 132 million vs. a net loss of USD 2 million reported in Q3FY20.
• On September 28, 2021, its European subsidiary Goodyear Europe BV (GEBV) closed the issuance of EUR 400 million aggregate principal amount of 2.750% senior notes due 2028.
• Its EBITDA and operating margins for the quarter were 10.7% and 5.5%, compared to the industry median of 11.0% and 5.9%, respectively.
• The stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels and its RSI Index is at 53.84.
• It is leaning towards the higher end of its 52-week range of USD 9.95 to USD 24.89.
• GT's stock price has surged 106.30% in the past twelve months.

Technical Price Chart (as of December 10, 2021). Analysis by Kalkine

Conclusion: Considering the decent business fundamentals, relatively low-profit margins compared to the industry, a significant uptick in the stock price, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 21.93, down 2.19%, as of December 10, 2021, 1:00 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.