GT stock price is just SO cheap, it’s hard to resist.
If GT stock breaks above $13.26, it would be a Falling Wedge breakout and the stock would likely run to $15 to $17.72 (green area).
Just how cheap is GT stock price? It trades at a P/E of 6.7 and a Forward P/E of 6.2. The market cap on GT stock is $3.06B but the company did $15.03B in sales last year make a smoking hot P/S of 0.20! On top of this crazy valuation the company pays an annual dividend of 4.9%.
On September 9, 2019, bullish option flow was detected in Goodyear Tire with 12,930 calls trading, 12x expected, and implied vol increasing over 1 point to 38.14%. Sep-19 12.5 calls and Apr-20 12 puts are the most active options, with total volume in those strikes near 12,100 contracts. The Put/Call Ratio is 0.23.
We are not adding GT stock to the long-term buy and hold portfolio as earnings and revenue have fallen. However, a short-term Falling Wedge breakout trade may be setting up. This is an extremely risky trade based on chart technical levels only.
Disclosure: We do not hold any position in GT stock.