A Look at Goodyear (GT) Valuation After Insider Buying, Product Wins, and Chemical Business Sale

Goodyear Tire & Rubber (GT) caught investors’ attention this week after Director Jason J. Winkler bought 100,000 shares. This news comes as the company wrapped up its chemical business sale and posted higher operating income under its turnaround plan.

See our latest analysis for Goodyear Tire & Rubber.

Momentum has returned for Goodyear’s share price in recent weeks, with a 1-month share price return of 15.1% and a 1-day jump of 6% as investors respond to management’s confidence and successful product launches. While the past year’s total shareholder return remains negative, recent gains suggest a possible shift in sentiment and renewed optimism about the company’s turnaround and market performance.

If standout insider moves and a rebound in product awards have you thinking beyond Goodyear, this could be the perfect time to broaden your search and discover See the full list for free.

So with insider buying, fresh product accolades, and improving financials, is Goodyear now trading at a bargain compared to its potential? Or have recent gains already priced in the company’s next stage of growth?

Most Popular Narrative: 15.5% Undervalued

Goodyear Tire & Rubber closed at $8.10, while the most widely followed narrative believes the fair value is $9.59 per share. This gap sets the stage for a more optimistic outlook built on internal improvements and strategic moves.

The asset sales (OTR, Dunlop, and Chemical business) and strong progress on deleveraging are expected to yield a significantly improved balance sheet and lower interest burden. This would enhance Goodyear's ability to reinvest in growth, drive earnings accretion, and reduce financial risk.

Read the complete narrative.

What’s the secret behind this upbeat valuation? The narrative relies on a bold profit turnaround and a market multiple that could surprise even seasoned investors. Which financial levers, projections, and balance sheet moves unlock this price? The full story connects the dots in ways you wouldn't expect.

Result: Fair Value of $9.59 (UNDERVALUED)

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

However, persistent competition from low-cost imports and ongoing trade disruptions could quickly undermine the optimism surrounding Goodyear’s recovery and margin improvement.

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

Build Your Own Goodyear Tire & Rubber Narrative

If you see things differently or want to dig into the numbers yourself, it’s quick and easy to shape your own view. Do it your way

A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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