Goodyear Tire & Rubber Co. (GT) has been burning rubber of late as the company heads into its seasonally strong period. Over the last 20 years, GT has gained an average of 14% from February to May, and this year is shaping up to be another winner, with the stock price up 11% in the last 2 weeks alone.
Breakout In Progress
GT stock has been looking quite bullish since the company reported an earnings beat for 2016 fourth quarter results in early February. The stock price easily penetrated long term resistance levels of $33 and $35 and the MACD turned positive at the end of January, signaling a green light for this seasonal play.
The company has a P/E Ratio of 7.58, significantly lower than the industry average of 16. Operating margin has improved over the course of the last year from 11.1% to 11.9%. Return on Equity (ROE) jumped from 10% to 30%.