Today’s stock is one from the bargain basement. Goodyear Tire & Rubber Company (GT) tanked with the market in early August, and has yet to get back on its feet. But AlphaProfit Sector Investors’ Newsletter Editor Sam Subramanian doesn’t think there’s anything wrong with the company, and sees a buying opportunity here. Here’s his recommendation, from last month, which was in the latest Digest:
“The Goodyear Tire & Rubber Company shares are down sharply from their $18.25 a share July high. The tire maker’s fundamentals are on a sound footing and the decline represents a buying opportunity. In the second quarter, Goodyear left analysts’ forecasts in the dust by reporting revenue and EPS surprises of 8% and 141%, respectively. Goodyear targets to save $1 billion in costs by 2012. While rising raw material costs, intense competition and the company’s underfunded pension pose risks for Goodyear shareholders, the shares trade at 7X forward EPS and offer good value for long-term investors. Buy Goodyear Tire & Rubber Company Below: $10.60. Sell Above: $12.85. Stop-Loss: $5.50. Risk Rating: Above Average.”
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