These industrials are weathering the virus

Article Excerpt

The coronavirus pandemic presents both of these industrials with unique challenges. However, each has streamlined operations and is prepared to weather this crisis to prosper in the future. We see both stocks as buys. GOODYEAR TIRE & RUBBER $10.65 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (www.goodyear.com; Shares outstanding: 233.1 million; Market cap: $2.5 billion; No dividends paid) is one of the world’s largest tire makers. It has 47 production plants in 21 countries. The company’s overall tire volume dropped to 36 million units for the three months ended September 30, 2020. That’s an 18% drop from a year earlier; the decline is due to lower shipments to vehicle makers because of COVID-19. For the three months ended September 30, 2020, Goodyear’s revenue fell 8.9%, to $3.47 billion from $3.80 billion a year earlier. It earned $24 million, or $0.10 a share, in the latest quarter, excluding one-time items. That’s a drop of 77.1%, from $105 million, or $0.45, a year earlier…

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