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We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where The Goodyear Tire & Rubber Company (NASDAQ:GT) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.
The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.
We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.
A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.
To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.
A tire manufacturing plant, showing the mechanization and efficiency of the company's operations.
The Goodyear Tire & Rubber Company (NASDAQ:GT)
The Goodyear Tire & Rubber Company is a manufacturer, developer, distributor, and seller of tires and related products and services. The company provides different lines of rubber tires for trucks, motorcycles, farm implements, aircraft, automobiles, buses, and others. It also sells installation products and services online.
As per the company’s recently announced Q4 results, sales went down by 3% YoY. The reason behind the decline in sales was lower volumes. Due to the impact of growth in low-end imports in major markets, unit volume declined by 4% YoY. The firm’s Forward initiatives added $195 million in savings.
On the back of the strong earnings, the company provided a positive future outlook. With the combined contribution of volume growth and price mix in the second half of the year, management anticipates achieving $750 million in gains from its Goodyear Forward initiative in 2025. Due to the increasing raw material costs, global unit volumes are expected to decrease by 2%-3% in Q1 2025.