Why Shares in Goodyear Popped Higher Today
Shares in tire maker Goodyear Tire Rubber Co (NASDAQ: GT) rose by as much as 6.2% at 11:30 a.m. today. The positive move comes as a sharp price correction in oil led investors to factor in better earnings outcomes for Goodyear.
The tire maker's exposure to oil comes from two main areas. First, higher oil prices mean higher gasoline prices, and that usually results in a moderation in miles driven. That's bad news for tire companies, as about 70% of industry demand for tires comes from the replacement market.
Image source: Getty Images.
Source Fool.com
The Goodyear Tire & Rubber Co. Stock
€5.60
-0.140%
With 7 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
Based on the current price of 5.6 € the target price of 12 € shows a potential of 114.13% for The Goodyear Tire & Rubber Co. which would more than double the current price.
