Goodyear Tire & Rubber Company
GT
position
long
Andrew Wellington
Thesis
Goodyear has transformed its business by exiting the low-end tire market and focusing on high-value performance tires. Despite past struggles, the company is now positioned for strong profits with projected earnings of $3 per share this year, trading at a modest valuation of just over 9x earnings.
Did it work?
failed
confidence: high
The stock price has declined by 75.2%, which is a significant drop and contradicts the long thesis that anticipated strong profits and a modest valuation. Given the drastic negative performance, it indicates that the company's transformation has not yielded the expected results, leading to a failure of the investment thesis.
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