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Tag: GT

  • What made Goodyear Tire & Rubber Co (GT) a Hot Story in the Financial Market Today

    What made Goodyear Tire & Rubber Co (GT) a Hot Story in the Financial Market Today

    Goodyear Tire & Rubber (GT) captured a huge value addition in its stock price just after the company set forth to buy Cooper Tire & Rubber Company with a total value of $2.8 billion. The transaction proved to be advantageous for shareholders of Cooper Tire & Rubber as they will get a cash amount of $41.75 per share along with the exchange ratio of 0.907 against each share of Cooper Tire which is fixed.

    Goodyear Successful Strategy

    The said deal will give Goodyear a boost in global tire industry and will strengthen its leadership position. It also comes up with certain tax benefits and creates positive synergies. The company believes that the particular deal will have immediate impact on its stock price and bring incremental growth in earning per share and will ultimately improve its balance sheet

    According to the quarterly report provided by Goodyear, despite of all the challenges corona virus pandemic posed the company was doing well and it had easily beaten the analyst views on its earnings and revenues. The stock attained huge value after submitting its quarterly report. The decision of buying Cooper Tires came up with the several positive reviews by the financial analyst and it would further heighten company’s market position and bring growth prospects to earning per share.

    Tire Market Anticipation

    It is believed that tire market will rebound once the coronavirus pandemic gets over and the restrictions are lifted around the globe. Goodyear has already strengthened its position in the beginning of 2021 and is anticipated to sustain its market value and the stock might have more room to rise if the tire market sees an improvement in the near term.

  • The Best Tire Stocks for the long-term Investment

    The Best Tire Stocks for the long-term Investment

    The tire industry has a couple of notable stocks with upside in the long-term.

    The tire industry is an essential part of the automobile sector. The demand for electric vehicles is growing at a rapid speed and the shift toward green transportation is the hottest trend in today’s date.

    Though the demand for combustion vehicles may have been affected by the emergence of EVs. However, both the vehicles need tires to run, which keeps the demand for tires steady despite the changing ecosystem of auto space.

    As per ResearchAndMarkets.com, the global tire market is expected to cross 2.7 billion units by 2025. This shows that the tire market has much upside as the growth is quite swift. So, let’s have a look at the best tire stocks in the market to buy for long-term investment.

    The Goodyear Tire (GT)

    The Goodyear Tire (GT) is one of the biggest tire producers and has a stronghold in the market. After a bumpy 2020, the company is set to gain its momentum this year. GT has made a strong bullish movement in Feb. and with the announcement of Q4 results, the shares are on a roll.

    The company released its quarterly results with profits and top sales, beating estimates by a wide margin. Goodyear reported a profit of $63 million compared to a loss of $392 million in the past year. While the adjusted earnings per share were $0.44, surpassing the FactSet consensus estimate of $0.16. The sales dropped 2% to $3.7 billion but toppled FactSet estimates of $3.6 million.

    After a tough first half in the last year, things improved for the company in the second half of 2020. The CEO of Goodyear Tire, Richard J. Kramer highlighted that they have good momentum heading into 2021. The commercial business is outperforming the industry and the consumer replacement business is also getting stronger.

    Kramer added that their consumer OE pipeline has shown robust improvements. So, the company expects this year’s outlook to be profitable with an increase in sales.

    Cooper Tire (CTB)

    Cooper Tire (CTB) is another prominent US firm that manufactures tires. The company has much potential in the long run as the market is expected to grow in the coming years. However, the company has a handful of debts to pay in the coming 12-month period.

    The liabilities of Cooper due within 12-months are around $640.3 million, while $891.5 million beyond that. Whereas, to fulfill the obligations, the company had cash of $496 million and has receivables worth $584.6 million due in 12 months. So, the liabilities are almost $451.6 million more than both the cash and short-term receivables.

    In case of emergency funding, Cooper Tire is big enough to generate finances to fulfill its due obligations. The company is worth more than $2 billion, which shows that Cooper can raise capital to keep up its balance sheet.

    Whereas, the rest of the quarterly outcomes were on the positive side as the company continues to improve. After a hard-fought battle early in 2020 amid the pandemic, Copper Tire’s global unit volume soared 0.5% from the prior year—in Q3 2020. While the net sales surged over 8.6% to $765 million. The profit was around $172 million compared to $53 million in 2019.

    So, Goodyear Tire (GT) and Cooper Tire (CTB) are the two most suitable investment options for investors in the tire industry.

  • Top 10 Auto parts stock for your portfolio

    Top 10 Auto parts stock for your portfolio

    For most investors, the auto industry was seen to be relatively quiet and boring until ‎recently. Cars are becoming ‎high-tech machines due to the rise of electric vehicles and ‎autonomous driving. Some of the up-and-coming players ‎in the space are becoming really ‎excited about these technologies. A major reason for all this interest in innovative ‎auto ‎stocks is that the nature of the car business is changing. It is no longer sufficient to have a ‎vehicle that ‎performs well mechanically. Besides, you must integrate cutting-edge ‎technology into every facet of that experience ‎as well.‎

    As well, Tesla (NASDAQ: TSLA) saw its stock soar during 2020, with more young EV ‎wannabes following in Tesla’s ‎footsteps in a frenzy of IPOs and SPACs to raise money from ‎an eager public. Even though some of the EV stocks ‎have gotten ahead of themselves in the ‎long term, many haven’t. The market cap of several companies now ‎exceeds billions, ‎despite very little revenue so far.‎‎

    Aptiv PLC (NYSE:APTV) shares were trading down -0.79% at $123.32 at the time of writing ‎on Monday.‎

    Aptiv PLC (NYSE:APTV) share price went from a low point around $29.22 to briefly over ‎‎$125.76 in past 52 weeks, though shares have since pulled back to $123.32. APTV market cap has remained high, ‎hitting $33.46B at the time of writing, giving it price-to-sales ratio of more than 2.‎

    If we look at the recent analyst rating APTV, KeyBanc Capital Markets downgraded ‎coverage on APTV shares with a Sector weight rating and a $120.32 price target, which implies ‎room for -3.0% downside momentum this year.‎

    American Axle & Manufacturing Holdings Inc. (AXL) last closed at $7.73, in a 52-week ‎range of $2.50 to $10.99. Analysts have a consensus price target of $9.00.‎

    BorgWarner Inc. (BWA) stock drop by -0.21% to $38.54. On December 2, 2020, the ‎company reported that it been awarded on Newsweek’s list of America’s Most Responsible Companies 2021. The ‎most recent rating by Wolfe Research, on November 12, 2020, is at a Peer perform.

    Dana Incorporated (NYSE:DAN) Shares headed falling, lower as much as -0.31%. The ‎company on December 7, 2020 declared that it was named one of “America’s Most Responsible Companies 2021” ‎by Newsweek Magazine. The most recent rating by Barclays, on December 17, 2020, is at an Equal weight.

    Foresight Autonomous Holdings Ltd. (NASDAQ:FRSX) fall 0.00% after losing more than ‎‎$0.0 on Monday. The firm recently revealed that the it will join the University of Michigan’s TechLab at Mcity ‎‎2021 startup cohort, managed by the Center for Entrepreneurship.‎

    Gentex Corporation (GNTX) last closed at $33.51, in a 52-week range of $19.48 to $34.01. ‎The BOD of the company on December 2, 2020 announce fourth quarter 2020 cash dividend. Analysts have a ‎consensus price target of $34.97.‎

    The Goodyear Tire & Rubber Company (GT) stock drop by -1.44% to $10.29. The company ‎and SafeAI, on December 10, 2020 reported a strategic relationship to incorporate tire intelligence into the ‎programming of autonomous heavy equipment vehicles. The most recent rating by Morgan Stanley, on December ‎‎11, 2020, is at an Equal-weight.‎

    Hyliion Holdings Corp. (NYSE:HYLN) Shares headed falling, lower as much as -1.83%. The ‎most recent rating by Barclays, on December 16, 2020, is at an Overweight.‎

    LKQ Corporation (NASDAQ:LKQ) fall -0.64% after losing more than -$0.23 on ‎Monday.

    QuantumScape Corporation (QS) last closed at $94.90, in a 52-week range of $9.74 to ‎‎$87.50. The company on December 8, 2020 released performance data for its solid-state battery technology. ‎Analysts have a consensus price target of $28.00.‎

    Tenneco Inc. (TEN) stock soar by 0.10% to $9.83. The company on December 9, 2020 ‎revealed that it has been named to Newsweek’s 2021 list of America’s Most Responsible Companies. The most ‎recent rating by JP Morgan, on April 02, 2020, is at a Neutral.

    Westport Fuel Systems Inc. (NASDAQ:WPRT) Shares headed falling, lower as much as -‎‎0.59%. The most recent rating by Lake Street, on May 10, 2019, is at a Buy.