Goodyear Stock Sees Mixed Signals Amid Earnings Misses and Potential for Long-Term Stabilization

Technical Analysis

The Goodyear Tire & Rubber Company (GT) closed at $10.26 on August 7, 2025, advancing 3.22% intraday from a low of $9.98 to a high of $10.43. The volume at 28.59 million far exceeded the average daily volume of 6.35 million, signaling strong investor interest and potential volatility. The RSI at 44 suggests the stock is neither overbought nor oversold, positioned in a neutral momentum zone. The MACD remains negative at -0.11, reflecting residual bearish momentum in the medium term, though the positive price action and volume could indicate a potential trend reversal. Price is under the 50-day moving average ($10.86) but above the 200-day average ($9.86), denoting mixed momentum signals with short-term resistance near $10.94 and support at $10.24.

For the next trading day, the immediate support at $10.24 is critical. A hold above this level could fuel a test of the resistance at $10.94, possibly leading to intraday gains. However, given the MACD and overall mixed technicals, momentum may remain subdued near-term. Over the upcoming week, the trend will depend on how the stock interacts with the 50-day moving average and resistance zone; a sustained break above $10.94 could open room for a retest of the yearly high ($12.03), while failure could see a retest of the $9.75 stop-loss level.

Fundamental Analysis

Goodyear’s market capitalization stands at $2.39 billion, reflecting a modestly sized industrial firm. The trailing twelve-month EPS is $0.84, with a PE ratio of 9.95, indicating a valuation that is relatively inexpensive compared to broader market averages, which generally lie above 15. However, the company posted a Q2 2025 loss of $0.17 per share, missing earnings estimates of $0.37, and revenue dropped 2% year-over-year. This earnings miss and revenue contraction highlight near-term operational challenges, likely attributable to tariff impacts and unfavorable trade conditions as referenced in recent news. The company’s ongoing restructuring, including $195 million in segment operating income benefits and asset sales to shore up the balance sheet, suggests proactive measures to stabilize finances.

The intrinsic value implied by a PE of approximately 10, against a cyclical sector outlook and tariff headwinds, might put fair value near the current share price. The disparity between the current price and analyst target consensus of $9 suggests some cautious bearish sentiment or anticipated downside risks in the short to medium term. However, the balance sheet improvements and strategic realignments could support long-term stability.

Intrinsic Value and Long-Term Investment Potential

Given the cyclical nature of the tire industry, the intrinsic value of Goodyear shares likely hovers near the current trading range, factoring in earnings volatility and external trade risks. The company’s EPS decline and tariff-related pressures weigh on growth projections, yet the low valuation provides a margin of safety for long-term investors. The stable 200-day moving average support and ongoing operational improvements indicate potential for value recovery if market conditions improve post-tariff alleviation and global economic normalization. Investors with a long-term horizon may consider GT a value play, contingent on successful execution of turnaround strategies and earnings rebound in coming quarters.

Overall Evaluation

GT represents a stock with mixed technical signals and fundamental headwinds, including earnings misses and external tariff challenges. Its low PE ratio and recent shareholder activity demonstrate value-oriented interest, but short-term risks prevail. The stock’s near-term outlook is cautious, with support critically tested and modest resistance overhead, while long-term prospects remain tied to effective restructuring and macroeconomic factors. Analyst consensus balances between buy and hold, with some selling pressure factored in.

This positions GT as a Hold candidate: the stock shows potential for stabilization and gradual appreciation but currently lacks strong momentum or clear catalysts for immediate upside. Market participants should monitor price action around support levels, earnings guidance ahead of the November announcement, and tariff developments for directional clarity.