Goodyear Tire & Rubber
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.