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 up 0.1%. By the end of trading, Goodyear Tire & Rubber fell 29 cents (-2.2%) to $12.67 on average volume. Throughout the day, 2.8 million shares of Goodyear Tire & Rubber exchanged hands as compared to its average daily volume of 3.7 million shares. The stock ranged in price between $12.60-$12.94 after having opened the day at $12.92 as compared to the previous trading day's close of $12.96. Other companies within the Consumer Goods sector that declined today were: Tandy Brands Accessories ( TBAC), down 29%, Select Comfort Corporation ( SCSS), down 15.8%, SGOCO Group ( SGOC), down 9%, and Federal-Mogul ( FDML), down 6.9%.
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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 $3.19 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are down 6% 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 buy. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Central European Distribution ( CEDC), up 11.3%, Bridgford Foods Corporation ( BRID), up 9.8%, Leading Brands ( LBIX), up 9.2%, and Lifeway Foods ( LWAY), up 7.7%, were all gainers within the consumer goods sector with Altria Group ( MO) 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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