Financial trading blog
Monday, February 16, 2015
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.Recent Posts:
Weekend Paper Roundup 16/02/2015
Morning Market Comment 16/02/2015
Evening Market Comment 13/02/2015
Stock of the day 13/02/2015 - Acacia Mining PLC
Afternoon Market Comment 13/02/2015
Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone so please ensure you fully understand the risks involved.
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 blog 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 blog 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 blog 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 blog 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 blog.
The information contained within this blog 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