Goodyear Tire & Rubber Co (GT): Today's Featured Consumer Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Goodyear Tire & Rubber ( GT) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Goodyear Tire & Rubber fell 13 cents (-1.1%) to $11.86 on average volume. Throughout the day, 5.6 million shares of Goodyear Tire & Rubber exchanged hands as compared to its average daily volume of seven million shares. The stock ranged in price between $11.73-$11.95 after having opened the day at $11.88 as compared to the previous trading day's close of $11.99. Other companies within the Consumer Goods sector that declined today were: Global-Tech Advanced Innovations ( GAI), down 10.8%, Coldwater Creek ( CWTR), down 7.8%, Blyth ( BTH), down 7%, and Crumbs Bake Shop ( CRMB), down 5.7%.

The Goodyear Tire & Rubber Company develops, manufactures, distributes, and sells tires, and related products and services worldwide. Goodyear Tire & Rubber has a market cap of $2.85 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 12.3, equal to the average consumer non-durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 15% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Goodyear Tire & Rubber a buy, one analyst rates it a sell, and one rates it a hold.

TheStreet Ratings rates Goodyear Tire & Rubber as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.

On the positive front, Enova Systems ( ENA), up 9.1%, S&W Seed Company ( SANW), up 7.9%, Fuwei Films Company ( FFHL), up 5.4%, and Tianli Agritech ( OINK), up 5.3%, were all gainers within the consumer goods sector with Ecolab ( ECL) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).
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