Yahoo Finance Why The Goodyear Tire & Rubber Company (NASDAQ:GT) Could Be Your Next Investment
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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of The Goodyear Tire & Rubber Company (NASDAQ:GT), it is a notable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Goodyear Tire & Rubber here.
Very undervalued average dividend payer
GT is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of GT's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the auto components industry, GT is also trading below its peers, relative to earnings generated. This bolsters the proposition that GT's price is currently discounted.
GT's high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
Next Steps:
For Goodyear Tire & Rubber, I've compiled three essential factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for GT’s future growth? Take a look at our free research report of analyst consensus for GT’s outlook.
Historical Performance: What has GT's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
