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What: Shares of Goodyear Tire & Rubber
So what: Confirming the reports of Ford
Now what: The North American recovery wasn't the only explanation for the company's improved bottom line. Overall revenue dropped 9% year over year, but increased sales of more expensive tires and the closing of a high-cost plant in Tennessee helped to drive profits. For the full year, the company expects overall tire sales to be down 5% to 7%, but while product sales may be down, margins are improving across the board. Management acknowledged near-term challenges, but at current analyst estimates the stock trades at a P/E of just 5.8 at this year's expected earnings. Now could be a great time to get in on a solid brand that seems to have finally figured out how to control its costs. Any further improvement in the global economy should only send Goodyear shares higher.
Want to know where the rubber meets the road? Stay up to date with all of Goodyear's developments by adding it to My Watchlist.
Fool contributor Jeremy Bowman holds no positions in the companies in this article. The Motley Fool owns shares of Ford. Motley Fool newsletter services have recommended buying shares of and creating a synthetic long position in Ford. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.