A Look at Goodyear (GT) Valuation Following Launch of New Global Racing Group

Goodyear Tire & Rubber (GT) just announced its new Global Racing organization, bringing together all of its motorsport activities such as NASCAR, NHRA, and others into one group. This signals a fresh focus on racing innovation and brand growth.

See our latest analysis for Goodyear Tire & Rubber.

The announcement of Goodyear’s new Global Racing organization arrives after a tough stretch, with the stock hitting a 52-week low earlier this year and the 1-year total shareholder return slipping just below zero. While recent headline events, such as the historic Goodyear Blimp puppy flight and Q2’s wider-than-expected loss, have stirred attention, momentum for the share price remains muted and the stock most recently closed at $7.53. The renewed focus on motorsport and innovation could be a turning point if the shift is met with stronger earnings or renewed market enthusiasm.

If you’re eyeing other opportunities as automotive news heats up, this could be your sign to explore See the full list for free.

With shares trading well below analyst targets and recent performance lagging, the key question for investors now is whether Goodyear is sitting at a bargain, or if the market has already factored in the company’s future growth plans.

Most Popular Narrative: 28% Undervalued

With Goodyear’s most widely followed narrative placing fair value at $10.52, that is nearly $3 above the last close. The narrative highlights fundamental trends and strategic pivots shaping this upside.

Goodyear is positioned to benefit from the ongoing global increase in the vehicle parc and higher vehicle miles traveled. Both trends imply durable replacement tire demand. As market turbulence and inventory overhangs subside, this supports future revenue stability and growth.

Read the complete narrative.

Want to know the story behind this bullish valuation? The narrative leans on bold assumptions about future sales stability and rising product pricing power. What crucial market shifts and company moves could drive these optimistic targets? Dive in to uncover which levers are set to shape the next phase of Goodyear’s value debate.

Result: Fair Value of $10.52 (UNDERVALUED)

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

However, ongoing trade disruptions and mounting competition from low-cost importers could undermine Goodyear’s pricing power and long-term margin recovery.

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 deeper into the numbers, you can shape your own view and narrative 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 2 important warning signs that could impact your investment decision.

Looking for More Investment Ideas?

Don’t let fresh opportunities slip by. Find stocks with growth potential, unique trends, or hidden value that could set your portfolio apart with these tailored screens:

• Unlock powerful dividend income by targeting these 19 dividend stocks with yields > 3% offering yields above 3 percent and strong payout records.
• Spot emerging market leaders and get ahead of the curve with these 24 AI penny stocks at the frontier of artificial intelligence innovation.
• Capitalize on value opportunities by seeking out these 909 undervalued stocks based on cash flows that the market may have overlooked based on cash flow fundamentals.

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