The Goodyear Tire & Rubber Company (NASDAQ:GT)
Number of Hedge Fund Holders: 36
The Goodyear Tire & Rubber Company (NASDAQ:GT) is one of the biggest and oldest tire manufacturers in the world. The company operates across most regions globally and has 54 facilities in 21 countries.
It offers a wide range of tires for vehicles, including automobiles, trucks, buses, and aircraft, and markets products under brands such as Goodyear, Cooper, Dunlop, and others. In June 2021, Goodyear acquired Cooper Tire for $3.1 billion.
Goodyear’s (NASDAQ:GT) is structured into three regional segments: Americas, EMEA (Europe, Middle East, and Africa), and Asia Pacific. The company is focusing on its “Goodyear Forward” plan, launched in November 2023, which aims to optimize its portfolio and improve margins. The plan includes actions to generate over $2 billion from portfolio optimization, reduce costs by $1 billion annually by 2025, and double segment operating income margins to 10% by the end of 2025.
The company’s stock has been beaten down quite significantly this year as it has dropped by over 41%, as of October 16. However, it is now trading at a very cheap forward price-to-earnings multiple of 8.8, a nearly 50% discount to its sector median.
Overall GT ranks 5th on our list of the best auto components and parts stocks to buy. While we acknowledge the potential of GT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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