Goodyear Tire & Rubber Co (GT): Today's Featured Consumer Non-Durables 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 Non-Durables industry lower today making it today's featured Consumer Non-Durables laggard. The industry as a whole closed the day down 0.6%. By the end of trading, Goodyear Tire & Rubber fell 18 cents (-1.4%) to $12.56 on light volume. Throughout the day, 3.2 million shares of Goodyear Tire & Rubber exchanged hands as compared to its average daily volume of six million shares. The stock ranged in price between $12.50-$12.70 after having opened the day at $12.63 as compared to the previous trading day's close of $12.74. Other companies within the Consumer Non-Durables industry that declined today were: Frederick's of Hollywood Group ( FOH), down 13.2%, Cereplast ( CERP), down 12.5%, Delta Apparel ( DLA), down 4.7%, and China Xiniya Fashion ( XNY), down 4.5%.
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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 $3.12 billion and is part of the consumer goods sector. The company has a P/E ratio of 12.9, below the average consumer non-durables industry P/E ratio of 13.4 and below the S&P 500 P/E ratio of 17.7. Shares are down 10.2% year to date as of the close of trading on Friday. Currently there are three analysts that rate Goodyear Tire & Rubber a buy, one analyst rates it a sell, and two rate 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 generally higher debt management risk and poor profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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