Goodyear Tire & Rubber (NASDAQ:GT) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Goodyear (NASDAQ:GT) from a "hold" to a strong sell, signaling increased analyst pessimism about the company's near-term prospects.
• In Q1 Goodyear reported revenue down about 8.7% year-over-year and EPS of -$0.39 (a slight beat), but recorded a wider GAAP net loss and warned that weak demand and input-cost inflation will require additional cost actions while its Goodyear Forward program delivered roughly $107M in savings.
• Analysts remain cautious—MarketBeat shows a consensus "Hold" with a $9.11 target amid mixed ratings—and the stock trades near a one-year low (~$6.86) with a market cap around $2.0 billion, which limits near-term upside.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other research analysts also recently commented on the company. Deutsche Bank Aktiengesellschaft decreased their price objective on Goodyear Tire & Rubber from $12.00 to $9.00 and set a "buy" rating on the stock in a research note on Thursday, April 16th. Citigroup raised their price objective on Goodyear Tire & Rubber from $9.00 to $10.00 and gave the stock a "neutral" rating in a research note on Thursday, February 12th. JPMorgan Chase & Co. decreased their price objective on Goodyear Tire & Rubber from $11.00 to $10.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Finally, TD Cowen decreased their price objective on Goodyear Tire & Rubber from $10.00 to $9.00 and set a "buy" rating on the stock in a research note on Wednesday, April 15th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Goodyear Tire & Rubber has a consensus rating of "Hold" and a consensus target price of $9.11.

Goodyear Tire & Rubber Price Performance

Shares of Goodyear Tire & Rubber stock opened at $6.86 on Wednesday. The stock's fifty day moving average is $7.04 and its 200 day moving average is $8.06. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.54 and a current ratio of 1.06. Goodyear Tire & Rubber has a one year low of $6.14 and a one year high of $12.03. The stock has a market cap of $1.97 billion, a P/E ratio of -0.95, a P/E/G ratio of 0.67 and a beta of 1.17.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.39) EPS for the quarter, topping the consensus estimate of ($0.44) by $0.05. Goodyear Tire & Rubber had a positive return on equity of 0.88% and a negative net margin of 11.64%.The firm had revenue of $3.88 billion for the quarter, compared to the consensus estimate of $3.81 billion. During the same quarter last year, the company earned ($0.04) earnings per share. The business's revenue for the quarter was down 8.7% compared to the same quarter last year. Sell-side analysts anticipate that Goodyear Tire & Rubber will post 0.29 earnings per share for the current year.

Institutional Trading of Goodyear Tire & Rubber

Institutional investors have recently made changes to their positions in the business. Invenomic Capital Management LP purchased a new stake in shares of Goodyear Tire & Rubber during the third quarter worth about $13,753,000. CenterBook Partners LP grew its position in shares of Goodyear Tire & Rubber by 166.1% during the third quarter. CenterBook Partners LP now owns 2,040,792 shares of the company's stock worth $15,265,000 after purchasing an additional 1,273,883 shares in the last quarter. Anderson Financial Strategies LLC purchased a new stake in shares of Goodyear Tire & Rubber during the third quarter worth about $1,318,000. Allianz Asset Management GmbH grew its position in shares of Goodyear Tire & Rubber by 76.3% during the third quarter. Allianz Asset Management GmbH now owns 1,135,023 shares of the company's stock worth $8,490,000 after purchasing an additional 491,210 shares in the last quarter. Finally, Brevan Howard Capital Management LP grew its position in shares of Goodyear Tire & Rubber by 313.7% during the third quarter. Brevan Howard Capital Management LP now owns 438,206 shares of the company's stock worth $3,278,000 after purchasing an additional 332,294 shares in the last quarter. Hedge funds and other institutional investors own 84.19% of the company's stock.

Goodyear Tire & Rubber News Summary

Here are the key news stories impacting Goodyear Tire & Rubber this week:

• Positive Sentiment: Goodyear reported cost-savings from its Goodyear Forward transformation program (about $107M) and cited tariff-related benefits that helped offset weaker volumes; this supports near-term profitability improvement. PR Newswire Q1 Release
• Positive Sentiment: Adjusted EPS beat consensus: reported a loss per share smaller than analysts expected on the headline metric (company reported -$0.39 vs. consensus around -$0.43), which limited the sell-off. Zacks: Q1 Earnings Beat
• Neutral Sentiment: Management released the earnings presentation and held the investor call; slides and commentary provide detail but offered no clear upside guidance to calm investors. Earnings Presentation
• Neutral Sentiment: Cash flow and balance-sheet moves: operating cash flow showed improvement and capex was reduced, and the company reported lower total liabilities versus a year ago — these are stabilizing signs but not enough to offset weak sales. QuiverQuant: Q1 Financials
• Negative Sentiment: Demand weakness and falling tire volumes drove revenue down ~8–9% year-over-year, pressuring top line and margins. MarketBeat: Q1 Summary
• Negative Sentiment: Wider GAAP net loss and operating loss were highlighted in some reports (Quiver flagged a larger net loss and a swing to operating loss), raising concerns about underlying profitability. QuiverQuant: Wider Net Loss
• Negative Sentiment: Management warned that input-cost inflation (cited geopolitical pressures) and continued weak demand will require further cost actions — a signal that near-term margins could remain under pressure. WSJ: Management Comments
• Negative Sentiment: Analyst positioning remains cautious (few or no buy ratings and modest price targets), which limits upside until demand and margins show sustained improvement. QuiverQuant: Analyst Ratings & Targets

About Goodyear Tire & Rubber

The Goodyear Tire & Rubber Company is a leading tire manufacturer and rubber products supplier with more than a century of innovation in its portfolio. Founded in 1898 by Frank Seiberling in Akron, Ohio, the company has grown into a global enterprise known for its engineering expertise and quality standards. Over its history, Goodyear has pioneered advances in tire technology, from early pneumatic designs to modern high-performance and fuel-efficient solutions.

Goodyear's core business encompasses the design, production and distribution of tires for a variety of markets, including passenger cars, commercial trucks, off-the-road vehicles, aircraft and specialty applications.

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