Norton Global Asset Management Sees Continued Profit in Goodyear

Alexandra, 
Singapore, September 8, 2015 (Newswire.com) - ​Norton Global Asset Management, the Hong Kong Based Provider of Asset Management Services believes there is value in Goodyear Tire right now after the company reported better than expected second-quarter earnings and revenue. Goodyear has averaged 20.7% earnings growth every year for the last 5, and Norton Global’s analysts still expect to see in the region of 17% earnings growth next year.
Norton Global’s  senior analyst said “Over the last two years trading Goodyear had its low point of $19.63 on 13th October 2104 and its high of $32.22 recently on 19th August this year, it closed trading on Friday at $29.22, and we believe that it is a good stock for a long term hold in the current climate, it has taken a small hit due to the recent concern over China but overall 2105 has seen a confident approach taken to the stock”.
Goodyear’s overall outlook looks good, with earlier restructuring in England where they are closing their Wolverhampton manufacturing plant and Germany where they are ceasing consumer tire production, in both instances the production will be transferring to the Middle East and Africa which will make them leaner and is expected to improve the company’s operating income by around $30 million a year from 2017.
Goodyear does however generate over half its total revenue outside of the U.S., so having strong dollar is not doing it any favors. Most off the year has seen the same scenario and along with Goodyear has coped well However, this has been the case for the better part of the year, but positive conditions in the U.S. have assisted in offsetting the currency impact.
Even with a strong dollar working against Goodyear at the moment, there are still enough reasons to buy the stock.
For a start the U.S. is seeing tire shipments increasing, and the demand is anticipated to continue to rise. With car makers expected to reach record sales this year and increasing to 20 million by 2018 and with low oil prices leading to cheaper gas prices it all points to more miles on the clock which will mean tires get replaced quicker and Goodyear sell more tires.