A Fresh Look at Goodyear (GT) Valuation After Recent 11% Decline in Share Price

Goodyear Tire & Rubber (GT) is seeing fresh attention this week as investors digest recent trading activity and look for signals on the stock’s next move. Shares have struggled over the past month, sliding about 11%.

See our latest analysis for Goodyear Tire & Rubber.

This recent drop comes after a tough stretch for Goodyear Tire & Rubber, which is now trading near $6.89 and showing a 1-year total shareholder return of -15.15%. Momentum has clearly faded as investors weigh risks and future growth potential.

If this sector’s shake-up has you curious about new opportunities, it could be a smart moment to broaden your outlook and discover See the full list for free.

With shares trading well below analyst targets and a muted outlook clouding sentiment, the real question for investors is whether Goodyear is undervalued at these levels or if the market already reflects any potential turnaround.

Most Popular Narrative: 31% Undervalued

At $6.89, Goodyear Tire & Rubber trades well below the narrative’s fair value estimate of $10.02. This suggests a substantial disconnect between the current market price and future potential. This sets the stage for a deeper exploration into what is driving this difference.

The increasing regulatory and customer emphasis on sustainability and performance (including new EU/US tariffs favoring local producers and a shift toward fuel-efficient, high-tech tires) creates an opportunity for Goodyear, given its focus on innovation and capacity in USMCA/EMEA, to enhance both revenue and pricing power once market conditions stabilize.

Read the complete narrative.

Want to know which assumptions could shake up Goodyear’s fortunes? The narrative leans on forecasts for changing margins, cash flows, and a bold profit multiple. Ready to uncover the numbers and find out what future the analysts see in store for this legacy auto supplier?

Result: Fair Value of $10.02 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent competition from low-cost imports and continued margin pressures could quickly challenge the more optimistic outlook for Goodyear in the period ahead.

Find out about the key risks to this Goodyear Tire & Rubber narrative.

Build Your Own Goodyear Tire & Rubber Narrative

Feel like you see things differently or want to test your own assumptions? You can easily craft your own take on Goodyear’s outlook in just a few minutes. Do it your way

A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Looking for More Smart Investment Opportunities?

Don't limit yourself to just one stock when there are so many game-changing ideas waiting to be found. Unlock your potential with these standout opportunities before the next wave of investors catches on.

• Uncover high-yield winners to strengthen your passive income stream with these 18 dividend stocks with yields > 3% featuring reliable returns above 3%.
• Tap into emerging innovators by exploring these 27 AI penny stocks powering the new era of intelligent automation and digital transformation.
• Leverage undervalued gems and get ahead of the market curve with these 841 undervalued stocks based on cash flows centered on promising cash flow potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com