● AI Equity Research · Consumer Cyclical

The Goodyear Tire & Rubber Company (GT)

AI stock analysis · Auto Parts · Last analyzed Jul 8, 2026

Compass Score

3.0/5

Call

Hold

Price

$6.51

AI Target

$7.46 +14.5%

AI Analyst Summary

Goodyear's primary bull thesis rests on a deep forward valuation (9.8x Forward P/E) and a compelling PEG of 0.43, implying significant upside if the company successfully executes its Goodyear Forward restructuring program targeting $1.3B+ in cost savings. However, the company is currently loss-making, revenues declined 8.7% YoY, and EPS execution has been inconsistent, making the recovery thesis contingent on operational improvements that have yet to materialize. The key risk is that cost-reduction targets slip or volume declines accelerate, leaving the earnings recovery story unfulfilled.

Catalysts

Execution milestones on the Goodyear Forward restructuring program, targeting over $1.3B in savings — any Q3/Q4 update confirming progress could re-rate the stock meaningfully.
Stabilization or recovery in replacement tire volumes in North America and EMEA, which have been pressured; an improvement in consumer demand data or pricing could reverse the -8.7% revenue trend.
Further debt reduction or asset divestiture announcements (e.g., Dunlop brand or non-core segments) that improve the balance sheet and restore earnings-per-share trajectory toward the forward estimate.

Fundamentals

Pe No trailing P/E (loss-making); Forward P/E 9.8x · 2.0/5

Trailing P/E is unavailable due to current losses, which is a red flag. However, the forward P/E of 9.8x is modest and below the sector median, suggesting a recovery path is priced in conservatively.

Peg PEG Ratio: 0.43 · 5.0/5

PEG of 0.43 is well below 1.0, indicating the stock is materially undervalued relative to its expected growth. This is a strong positive signal, though it relies on the forward earnings recovery materializing.

Analyst Rating Hold consensus (2.7) · 3.0/5

Consensus of 2.7 on the inverted scale falls in the Hold range (2.5–3.0), reflecting cautious but not bearish sentiment. With 7 analysts covering the stock, the rating is capped at 3. The 3 Buy / 6 Hold / 1 Sell breakdown confirms a largely neutral-to-cautious stance.

Earnings Trend Earnings Growth YoY: N/A; Revenue Growth YoY: -8.7% · 2.0/5

The company is currently loss-making with no reported YoY earnings growth, and revenue declined 8.7% year-over-year. These are meaningful headwinds that weigh heavily on the earnings trend score.

Price Target Beat EPS Beat Rate: 2 of 4 quarters · 2.0/5

Only 2 of the last 4 quarters showed EPS beats, indicating inconsistent execution. With limited history (only 4 quarters available), this aligns with a below-average score of 2.

Management Weak execution; mixed capital allocation signals · 2.0/5

Inconsistent EPS beats (2 of 4), ongoing losses, and declining revenues suggest management has not yet demonstrated reliable execution on its recovery plan. Analyst sentiment is neutral at best, offering limited confidence in near-term delivery.

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