best tire stocks to buy

Are These The Best Tire Stocks To Buy Now?

There’s no question tire stocks have been negatively affected by the coronavirus pandemic, and the pain is not over yet. This came after the shutdown of manufacturing plants and declined in tire shipments. However, with the gradual reopening of the economy, more manufacturing plants are restarting their operations and resuming shipments. Therefore, many investors are finally seeing some light at the end of the tunnel. However, as most tire stocks start to slowly bounce back, shares of Goodyear Tire & Rubber Co (GT Stock Report) tumbled after President Trump called for a boycott. This is in reaction to a social media post that suggested the company was playing favorites with employee-approved political speech. The President is clearly not a fan of Goodyear after tweeting his discontent to his 85 million followers on Wednesday.

At 10:33 a.m. on Wednesday, Trump tweeted: “Don’t buy GOODYEAR TIRES – They announced a BAN ON MAGA HATS. Get better tires for far less! (This is what the Radical Left Democrats do. Two can play the same game, and we have to start playing it now!).” Shortly after the tweet, GT stocks fell 6% instantly during Wednesday’s intra-day trading.

Wall Street doesn’t like the stock either. As a result, many analysts don’t feel too optimistic that the share could rebound strongly anytime soon. On the flip side, would it be wise to trade according to Trump’s tweet? In his own exact words, “get better tires for far less”. Would this be a buying opportunity for other top tire stocks in the market? Let’s find out.

Read More

Best Stocks To Buy [Or Avoid] In August Amid Goodyear’s Boycott: Michelin

First, up the list, French tire maker, Michelin (MGDDY Stock Report) hasn’t been performing well for most of the year. And that’s okay because it is a systemic problem. The lockdown measures have sent retail sales plummeting. Of course, the aforementioned factors caused tire sales to plunge abruptly. The company reported a first half-loss of 137 million euros compared to last year’s profit of 844 million euros.

best tire stocks to buy now (MGDDY stock)

The company’s shares have rebounded strongly after the coronavirus induced market sell-off in March, which saw their shares jump from around $15 per share to $23 per share in recent weeks. Whether MGDDY stock is a buy, it’s hard to gauge now because there hasn’t been any specific update that would attract investors’ interests.

[Read More] Apple Hits $2 Trillion Market Cap, Is AAPL Stock Still A Buy?

Best Stocks To Buy [Or Avoid] In August Amid Goodyear’s Boycott: Bridgestone Corp

Bridgestone Corporation (BRDCY Stock Report) could be another tire stock to buy ahead of full economy reopening. The company reported a double-digit percentage decline in its quarterly earnings this month, like other tire makers. But it may be a good buy if you like the thesis of investing in epicenter stocks before they rebound sharply.

tire stocks to buy (BRDCY stock)

Even though some of the manufacturing plants in Europe and North America were shut due to the pandemic, operations have since resumed at all plants with operating rates being raised in a phased manner. BRDCY stock currently traded around $15 per share, only 16% lower from where it was at the beginning of the year.

With business slowly resuming back to normal, can we expect BRDCY stock to trade at a higher level than where it was compared to the beginning of the year?

Bottom Line

While it may be hard to entice investors to take a chance in this space, the tire market could be a profitable one after the novel coronavirus. The commercial vehicle tire market is poised for huge profits from 2020 to 2026, according to an industry research report. No doubt, the pandemic has wreaked havoc in these businesses. But with a strong balance sheet and prudent management, there will be a rainbow after the rain in this sector. Unlike auto stocks that need to see new vehicle sales, tires will still be in demand even if people are driving old cars. Be it Bridgestone Corporation, Michelin, Firelli (PLLIF Stock Report) or Continental (CTTAY Stock Report), all stand a good chance for a strong rebound when the pandemic is over. With all that in mind, would you invest in any of these tire stocks today?

Sign up for our FREE Newsletter and get:

  • Stock Alerts And Ideas
  • Learn to Trade Stocks & Options
  • Free Access to The Fastest Growing Highest Rated Trading Chatroom
Privacy Policy

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 |

Notify of
Inline Feedbacks
View all comments
You May Also Like