Skip to main content

JP Morgan Chase & Company(JPM-N)
NYSE

Today's Change
Real-Time Last Update Last Sale Cboe BZX Real-Time

Why Investors Were Throwing Goodyear Stock Into Reverse This Week

Motley Fool - Thu Feb 15, 10:41PM CST

That squealing of brakes you heard on the stock market this week was the nearly double-digit skid of Goodyear Tire & Rubber's (NASDAQ: GT) shares. According to data from S&P Global Market Intelligence, they were down almost 9% week to date as of Thursday night. An uninspiring quarterly earnings report and subsequent analyst price target trims had much to do with that.

The fourth quarter was mixed

After market hours on Monday, Goodyear published the figures from its final quarter of 2023, in addition to those for the full year.

For the quarter, it took in slightly over $5.1 billion in net sales, which was down from the almost $5.4 billion it reported for the same period of 2022. On the other hand, non-GAAP (adjusted) net income rose sharply to $135 million, or $0.47 per share, from the previous fourth quarter's profit of $20 million.

The consensus analyst estimate for net sales was nearly $5.4 billion. However, those pundits were anticipating an adjusted net income of only $0.36 per share, on average.

A general decline in auto sales growth toward the end of 2023 affected Goodyear's results. In its earnings release, the company said its tire unit volume sank by almost 4% year over year.

A pair of price target cuts

Two of those prognosticators wasted little time adjusting their takes on Goodyear in the wake of the earnings release. Both Deutsche Bank's Emmanuel Rosner and JPMorgan Chase's Ryan Brinkman shaved their price targets on the veteran industrial stock. Rosner lowered his to $17 per share from the previous $18, while Brinkman cut his to $19 from $21. Both maintained their equivalents of buy recommendations.

Should you invest $1,000 in Goodyear Tire & Rubber right now?

Before you buy stock in Goodyear Tire & Rubber, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Goodyear Tire & Rubber wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of February 12, 2024

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

Paid Post: Content produced by Motley Fool. The Globe and Mail was not involved, and material was not reviewed prior to publication.

More from The Globe