Analysts Delving into the Numbers on The Goodyear Tire & Rubber Company (NASDAQ:GT) as ABR Moves to 79

The Goodyear Tire & Rubber Company (NASDAQ:GT) currently has an Average Broker Rating of 2.5. This number is based on the 8 sell-side firms polled by Zacks. The ABR rank within the industry stands at 79.   

Analysts on a consensus basis are expecting that the stock will reach $21.57 within the year.  The ABR is provided by Zacks which simplfies analyst ratings into an integer based number. They use a one to five scale where they translate brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating. 

Research analysts study publicly traded companies and make recommendations on the securities of those companies. Most specialize in a particular industry or sector of the economy. They exert considerable influence in today’s marketplace. Analysts’ recommendations or reports can influence the price of a company’s stock—especially when the recommendations are widely disseminated through television appearances or through other electronic and print media. The mere mention of a company by a popular analyst can temporarily cause its stock to rise or fall—even when nothing about the company’s prospects or fundamentals has recently changed.

Analysts often use a variety of terms—buy, strong buy, near-term or long-term accumulate, near-term or long-term over-perform or under-perform, neutral, hold—to describe their recommendations. But the meanings of these terms can differ from firm to firm. Rather than make assumptions, investors should carefully read the definitions of all ratings used in each research report. They should also consider the firm’s disclosures regarding what percentage of all ratings fall into either “buy,” “hold/neutral,” and “sell” categories.

One of the most important factors that investors look at when examining stocks is the consistency of earnings results. When the quarterly earnings report is released, investors watch closely to see if the company is performing up to expectations. A company that fails to meet projections may see large price swings following the report. Of course one bad quarter may not signal trouble, but a company that continually disappoints during earnings season may need to be further examined to help figure out what is going on. Experienced investors will closely watch stock price movements before and after earnings events in order to gain a truer understanding of how the market is reacting to the reports.

Most recently The Goodyear Tire & Rubber Company (NASDAQ:GT) posted quarterly earnings of $0.51 which compared to the sell-side estimates of 0.05. The stock’s 12-month trailing earnings per share stands at $2.31. Shares have moved $12.51 over the past month and more recently, $5.29 over the past week heading into the earnings announcement. There are 3 analyst projections that were taken into consideration from respected brokerage firms.

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Buy Ratings
3 analysts rate The Goodyear Tire & Rubber Company a Buy or Strong Buy, which is 37.5% of all the analyst ratings.

Earnings
Research analysts are predicting that The Goodyear Tire & Rubber Company (NASDAQ:GT) will report earnings of $0.53 per share when the firm issues their next quarterly report. This is the consensus earnings per share number according to data from Zack’s Research.

The Goodyear Tire & Rubber Company (NASDAQ:GT) closed the last session at $20.51 and sees an average of 2410908 shares trade hands in each session. The 52-week low of the stock stands at $17.4 while the current level stands at 29.85% of the 52-week High-Low range. Looking further out we can see that the stock has moved 1.53% over the past 12 weeks and 0.49% year to date.

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This article is informational purposes only and should not be considered a recommendation to buy or sell the stock.

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