Buy Goodyear, hold on to ATN

Article Excerpt

GOODYEAR TIRE & RUBBER CO. $32.26 (Nasdaq symbol GT; TSINetwork Rating: Average) (330-796-2122; www.goodyear.com; Shares outstanding: 251.8 million; Market cap: $8.5 billion; Dividend yield: 1.2%) is one of the world’s largest tire makers. It has 49 production plants in 22 countries worldwide. In the three months ended March 31, 2017, Goodyear earned $189 million, excluding one-time items. That’s a decrease of 3.1%, from $195 million a year earlier. The decline was mostly due to higher raw material prices. Earnings per share rose 2.8%, to $0.74 from $0.72, on fewer shares outstanding. That’s well above the consensus estimate of $0.63. Revenue rose slightly, to $3.70 billion from $3.69 billion. The company sold fewer tires, but sold more highpriced premium tires. This included heavy-duty truck tires. Freight volumes rebounded as orders for those tires rose 41% in the quarter from a year earlier. Goodyear is a leader in premium tires The company’s sales continue to expand in the fast-growing market for premium replacement tires. North America is…