• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Goodyear Tire & Rubber Should Have a Good Year for Shareholders

The charts of the big tiremaker are largely bullish and indicate the rally in its shares over the last few months should continue.
By BRUCE KAMICH
May 05, 2021 | 08:02 AM EDT
Stocks quotes in this article: GT

In his first Executive Decision segment during Tuesday's busy "Mad Money" program, host Jim Cramer spoke with Rich Kramer, chairman, president and CEO of Goodyear Tire & Rubber (GT) . The tiremaker just posted a nice earnings beat on a 15% uptick in revenue.

Kramer said electric vehicles require new tire solutions that can handle the extra weight and torque. He said Goodyear is also looking forward to meeting the needs of shared mobility systems such as robo-taxis, where speeds are slower but reliability is essential.

When asked about the supply of rubber, Kramer noted that he's never had a problem getting the raw materials he needs.

Let's check on the supply and demand of the charts of Goodyear. Prices are a lot stronger than they were at the time of our Feb. 8, 2019, review.

In this daily bar chart of GT, below, we can see that prices have been rallying the past 12 months. The slope of the 50-day moving average is positive and tests of the line have been successful buying opportunities since November. The slope of the slower-to-react 200-day moving average line is also positive. The On-Balance-Volume (OBV) line has been bullish since late September and is close to making a new high for the move up as buyers of GT have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been pointed down since early March but the two moving averages that make up this indicator are very close together, so we could soon see a buy signal.

In this weekly Japanese candlestick chart of GT, below, we can see a long lower shadow in March as traders rejected the lows. This suggests we will see further upside movement. The slope of the 40-week moving average line is positive. The weekly OBV line shows a rise from June and the MACD oscillator is still bullish.

In this daily Point and Figure chart of GT, below, we can see that prices reached an upside price target in the $18 area. We also see that potential chart resistance is from 2019 and not particularly heavy so it is very possible that the rally can continue without a lot of resistance.

In this second Point and Figure chart of GT, below, we manipulated the data a bit. Here we used weekly close-only price data with a five-box reversal filter. A lot of price history is shown and a potential longer-term price target in the $56 area. Impressive.

Bottom line strategy: Tires are not as interesting as chips or cloud-based platforms or a cure for a disease, but the charts of GT are bullish and I would buy GT at current levels, risking a close below $16. Our price targets are $24 and then $56.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Automobile Components | Automotive | Transportation | Mad Money | Executive Interview | Real Money

More from Stocks

As Fed Hour Approaches, Bulls Are Believers, Bears Are ... Incredulous

James "Rev Shark" DePorre
Feb 1, 2023 11:58 AM EST

One side has hope the Fed can tame inflation and set up a soft economic landing while the other thinks that expectation is ridiculous. Soon, we'll have some clues about what could play out.

McDonald's Solid Quarter Hijacked by Trouble on the Horizon

Jonathan Heller
Feb 1, 2023 11:30 AM EST

When the largest restaurant chain -- and 'Big Five' name -- talks you take notice.

What Do C.H. Robinson's Charts Say About the Economy?

Bruce Kamich
Feb 1, 2023 10:48 AM EST

The freight transportation firm reports Q4 earnings after Wednesday's market close.

I Like AMD and Lisa Su Even If the Stock May Need a Trim

Stephen Guilfoyle
Feb 1, 2023 10:45 AM EST

Do not confuse prudent risk management with my not continuing to like this name.

Look for More Upside in These 2 Stocks, Even Against a Challenging Backdrop

Bret Jensen
Feb 1, 2023 10:30 AM EST

Both names should see growth in 2023 and they're reasonably valued.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:10 PM EST REAL MONEY

    Fed Rate Decision

    Fed Lifts Benchmark Rate by 25 Basis Points, Sees ...
  • 12:27 PM EST REAL MONEY

    LIVE EVENT: Chris Versace and "Sarge" Guilfoyle Share Their Stock Market Insights

    This Monday, Jan. 30, at 12 p.m., our very own exp...
  • 11:48 AM EST REAL MONEY

    Watch Doug Kass on the Daily Rundown!

    In today's Action Alerts PLUS Daily Rundown, Doug ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login