There isn't much excitement going on at Goodyear Tire (GT - Get Report). Shares of one of the world's largest tire and rubber manufacturers have mostly meandered sideways in the last year, underperforming the broad market rally that's been lofting most other equity names higher over that same time period. But that boring business does have at least one exciting aspect: It's dirt-cheap. While the firm's P/E ratio currently sits in bargain territory at 7, Goodyear's ex-cash P/E is a floor-hugging 1.61.
Goodyear's name is synonymous with tires, and that's a good thing. Tires are a must-do action item for car owners, since driving on bald or damaged tires is one of the easiest ways to get in an accident. America's aging car fleet currently sports a higher average age than ever before, which should help spur tire sales in 2013. At the same time, a growing pace of new car sales is increasing the number of OEM sales Goodyear is booking right now. That pace should continue as long as central banks keep shoveling cheap money to consumers.That doesn't mean that Goodyear is without some challenges. Rising input costs and a costly, unionized North American workforce has made GT look unattractive to shareholders in the past. But now, the combination of a bargain price tag and industry tailwinds could send shares higher this quarter. From a technical standpoint, I'd recommend sitting on the sidelines until shares are able to settle at a support level.