Could Goodyear (GT) Unlock Long-Term Growth by Targeting Specialized EV and All-Terrain Tires?

Goodyear Tire & Rubber Company -0.23%

Goodyear Tire & Rubber Company

GT

8.80

-0.23%

  • Goodyear Tire & Rubber recently introduced three new all-terrain tires, the Wrangler Outbound AT, Wrangler Workhorse AT 2, and Wrangler ElectricDrive AT, aimed at SUVs, light trucks, electric vehicles, and work vans in North America.
  • With advances such as noise reduction technology for EVs and enhanced durability with Kevlar reinforcements, Goodyear is targeting specific growth segments as customer preferences evolve toward versatility and performance.
  • We'll explore how Goodyear's launch of a specialized electric vehicle tire could influence its long-term growth outlook and product strategy.

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Goodyear Tire & Rubber Investment Narrative Recap

For shareholders, the core belief is that Goodyear can deliver margin recovery and steady earnings growth by focusing on premium, specialized tire segments and operational efficiency, despite intense competition and persistent pricing pressure from low-cost imports. The launch of three new all-terrain tires, including electric vehicle-specific options, may help Goodyear defend share in higher-value niches, but is not likely to materially alter the near-term challenge of margin compression from global trade volatility, tariffs, and distribution channel disruptions.

Among Goodyear's recent updates, the introduction of the Assurance MaxLife® 2 in July, its longest-lasting all-season tire, directly underscores this push toward higher-value products and longer warranties. These launches align with Goodyear's efforts to bolster mix and profitability as market conditions and competitive pressures continue to evolve.

Yet, in contrast to Goodyear's innovation efforts, persistent pricing pressure from imports remains a key risk investors should stay mindful of, especially as...

Goodyear Tire & Rubber is projected to generate $18.3 billion in revenue and $405.2 million in earnings by 2028. This outlook assumes an annual revenue decline of 0.4% and a decrease in earnings of $23.8 million from the current $429.0 million.

Uncover how Goodyear Tire & Rubber's forecasts yield a $10.15 fair value, a 40% upside to its current price.

Exploring Other Perspectives

GT Community Fair Values as at Oct 2025
GT Community Fair Values as at Oct 2025

Simply Wall St Community members submitted six fair value estimates for Goodyear ranging from US$6.94 to a striking US$1,238.37 per share. As product mix and global trade themes shape sentiment, you can see just how widely views can diverge, inviting you to review these approaches for your own perspective.

Explore 6 other fair value estimates on Goodyear Tire & Rubber - why the stock might be worth just $6.94!

Build Your Own Goodyear Tire & Rubber Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
  • Our free Goodyear Tire & Rubber research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Goodyear Tire & Rubber's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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