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3 Surprising (and Surprisingly Cheap) Hot Growth Stocks

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Goodyear Tire & Rubber

Goodyear185 3 Surprising (and Surprisingly Cheap) Hot Growth StocksForward P/E: 8
Long-Term Growth Rate: 32%
ROE: 22

A tire company founded in 1898 might be the last thing you’d think of when looking for high-growth stocks, but Goodyear Tire & Rubber (GT) is burning up the track.

Net income for the most recent quarter jumped 37% year-over-year, driven by strong sales in Latin America, Asia, and yes, even poky old Europe. Much of the future growth is projected to come from Latin America and Asia, where a burgeoning middle class and expanding consumer credit are fueling car sales.

In other good news for investors, GT announced in September that it was reinstating a dividend (it hasn’t paid one since 2002) and is buying back $100 million of its own stock.

Goodyear stock is up 56% for the year-to-date — beating the S&P 500 by 43 percentage points — but still looks like a bargain. GT currently offers a 40% discount to its own five-year average on a forward earnings basis, according to data from Thomson Reuters Stock Reports.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/hot-growth-stocks-gt-car-mtw/.

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