Goodyear Tire Receives Strong Rating from Piotroski Model

Goodyear Tire & Rubber Co (GT) has garnered a 70% rating using the Joseph Piotroski model, reflecting positive financial fundamentals despite some critical weaknesses. This score positions it as a potential opportunity for investors watching mid-cap growth stocks.

Date: 10-04-2025

AI Rating: 7

Overview of Goodyear Tire & Rubber Co (GT)

Goodyear Tire & Rubber Co (GT) has achieved a 70% rating according to the Joseph Piotroski model, indicating some financial resilience. The focus on high book-to-market stocks suggests that GT holds considerable value potential for growth investors, especially within the Tires industry.

**Earnings & Cash Flow Strength**: The report indicates that GT passes key financial metrics such as Return on Assets, Cash Flow from Operations, and Cash Compared to Net Income. This suggests GT is effectively utilizing its assets for profit generation and is also generating strong operational cash flows, which are essential for funding growth and maintaining financial health.

**Concerns Regarding Financial Stability**: However, important weaknesses must be acknowledged. The company fails tests related to the Change in Current Ratio and Change in Shares Outstanding, which may raise concerns over liquidity and capital management. A declining current ratio could signal potential short-term financial strain, while an increase in share count might dilute existing investors' value.

**Implications for Investors**: The strengths highlighted by the Piotroski score boost GT's attractiveness to value-centric investors. A score of 70% indicates positive interest among strategy analysts, though it falls short of the 80% threshold, which would suggest stronger potential. Investors might want to watch for improvements in liquidity metrics and a stabilization of share counts to ensure the long-term viability of GT's growth narrative.

Stocks: GT