Goodyear Tire & Rubber (GT)
NASDAQConsumer DiscretionaryAuto - PartsSnapshot 2026-09-04
$6.25+2.29%
Close 2026-09-04 · 1-day change
NASDAQConsumer DiscretionaryAuto - PartsSnapshot 2026-09-04
Warn: Primary pillar under pressure — Strengthen cost structure to improve operating income: Metric not reported.
Goodyear is working to improve its cost structure with rationalization plans. The Goodyear Forward program has delivered $107 million in benefits recently. The company aims for an operating margin near $37.5 million by 2028. Despite recent losses, these efforts could stabilize profits.
Goodyear is still loss-making with declining segment income, down from $416 million to $95 million. CFO turnover may disrupt financial strategy. Weak industry demand and inflation continue to pressure results.
The market expects about 0.3% revenue growth and values Goodyear below peers with a negative free cash flow yield. Our fair value is about 111% above the Street median, reflecting more optimism on turnaround progress.
Breaks if: Segment operating income falls below $95 million in FY26
Continue actions to improve cost structure including rationalization plans and cost transformation to drive long-term value.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround situation. The company is currently loss-making and has faced weak recent financial performance, but it is attempting to strengthen its cost structure and drive growth through strategic initiatives.
The market seems to be pricing in a low expectations gap, indicating that GT is viewed as cheap compared to its peers. However, the overall valuation reflects a justified stance given the company's current struggles and the need for improvement.
Fundamentals may remain weak in the near term, especially given the company's history of earnings misses. Management's mixed progress on priorities and elevated risks could hinder recovery efforts.
The long-term thesis hinges on management's ability to execute on cost-saving measures and growth strategies. Additionally, external factors such as inflation trends and the performance of sector peers will be crucial for GT's trajectory.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company is closing a plant to reduce costs. This strengthens its cost structure and manufacturing footprint. However, the latest earnings report showed a deepening loss, indicating ongoing cost pressures.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Goodyear Forward benefits fall below $100 million per quarter
Focus on driving value for Goodyear brands through differentiated products and market share gains despite weak industry demand.
Breaks if: Operating margin falls below $35 million in FY28
Over the next 1 to 3 years, GT's path will depend on its operational improvements and market conditions. Not investment advice.