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 0.4%. By the end of trading, Goodyear Tire & Rubber fell $1.28 (-10.4%) to $11.02 on heavy volume. Throughout the day, 15.4 million shares of Goodyear Tire & Rubber exchanged hands as compared to its average daily volume of 5.2 million shares. The stock ranged in price between $10.99-$11.73 after having opened the day at $11.65 as compared to the previous trading day's close of $12.30. Other companies within the Consumer Non-Durables industry that declined today were: Deckers Outdoor Corporation ( DECK), down 16.9%, Summer Infant ( SUMR), down 7.1%, Cereplast ( CERP), down 5.3%, and Skechers USA ( SKX), 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 billion and is part of the consumer goods sector. The company has a P/E ratio of 12.4, below the average consumer non-durables industry P/E ratio of 12.9 and below the S&P 500 P/E ratio of 17.7. Shares are down 13.5% year to date as of the close of trading on Thursday. 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, relatively poor performance when compared with the S&P 500 during the past year and poor profit margins.

On the positive front, Tumi Holdings ( TUMI), up 5.8%, Columbia Sportswear Company ( COLM), up 4.3%, Deswell Industries ( DSWL), up 3.5%, and Mercer International ( MERC), up 3.4%, were all gainers within the consumer non-durables industry with Nu Skin ( NUS) being today's featured consumer non-durables industry leader.

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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