The Goodyear Tire Has Survived Many Bad Years

Summary

• The company was ranked #3 in the global tire industry. The company has improved its market position to ranked #2 by revenues in America through the acquisition.
• The uncertainty of the macro environment and the recent negative outlook revision from S&P continued to depress the valuation of the stock.
• The company has improved its ranking but its stock is still traded at a deep discount to its peers.
• The company's outstanding capability to generate cash flow amid the 2008 financial crisis and the 2020 COVID disaster is a strong testament to its resilience in recession.
• For long-term investors, the strategy is to buy more when this name goes lower due to the macro pressure.

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Investment Thesis

The Goodyear Tire & Rubber Company (NASDAQ:GT) was ranked #3 in the global tire industry. Our analysis below showed that the company has improved its market position to ranked #2 by revenues in America through

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.