Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes – just in case they're material to our investing thesis.
What: Shares of Goodyear Tire & Rubber
So what: Bank of America Merrill Lynch analyst John Murphy cited an attractive valuation for his upgrade, following Goodyear's protracted downward move this year. Goodyear has doubled from its March 2009 lows, but remains a far cry from its all-time highs set in 1998. It's essentially been in a long-term downtrend ever since.
Now what: Let's remember that analyst upgrades and downgrades are usually short-term events that shouldn't radically change our long-term perspective on a stock. Today's upgrade provides a short-term boost to current shareholders of Goodyear, but it does little to explain how it plans to deal with its nearly $5 billion in long-term debt, or how it intends to stay consistently profitable in a still-turbulent auto market. With automakers Ford
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Fool contributor Sean Williams does not own shares in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong. Ford Motor is a Motley Fool Stock Advisor recommendation.
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