Today's Technical View on Goodyear Tire and Titan International: Tire Industry Benefits from Auto Sector Revival

Feb 12, 2013, 07:30 ET from

LONDON, February 12, 2013 /PRNewswire/ --

Tire & Rubber companies are performing well. Thanks to the improvement in the overall economy and auto sector, these companies now have good demand for their products. Major companies like Goodyear Tire & Rubber Company (NASDAQ: GT) are now working to improve their margins in order to make themselves more sustainable. Titan International Inc. (NYSE: TWI) is scheduled to announce its results later this month and the outlook is optimistic. Overall, Tire and rubber company stocks are emerging to become an attractive investment option. StockCall initiated free in-depth technical analysis on Goodyear Tire & Rubber and Titan International which are currently available upon sign up at

Goodyear Expected to Report Good Q4 Numbers

Goodyear Tire & Rubber is one of the leading tire manufacturers in the world. While the company and its finances took a hit during the recession, it did a good job crawling back and seems to be right on the track. The company is scheduled to announce its quarterly earnings today (none of the data was available at the time this article was completed) and is expected to report its fourth quarter revenue at $5.34 billion. Its EPS is expected to be at 22 cents per share. The company is also working to improve its margins and while its gross margin improved a little, its net margin and operating margin are still in a declining phase. Sign up for the free technical analysis on Goodyear Tire & Rubber at  

Goodyear Tire & Rubber stock trades at forward P/E ratio of 6.02, making it a rather inexpensive stock to own. The company is also expanding internationally and is taking other measures such as cost cutting to boost its margins. With the improvement in global economy, the company expects its demand to increase. Goodyear Tire & Rubber also expects good response from auto industry as it has been picked by Ford for supplying tires for its upcoming models. The company has been delivering solid results from the past couple of quarters and the streak is likely to continue. With the improvement in auto sectors and economy, the demand for its products is also expected to increase, which is a positive sign for its stock price.

Titan International to Invest in Indian Project

Titan International's stock performed well this year as its gained 21 percent on a Year-to-Date basis. The stock is likely to keep up its momentum post-Q4 result announcement. Titan International is currently in a bullish mode as its stock trades above its short-term and long-term moving average price. On the upside, Titan International is expected to face its resistance level at $27. However, investor needs to remain cautious as well since the stock is in overbought territory with the Relative Strength Index at 81. Download the free report on Titan International by registering at  

Titan International stock is also relatively cheaper at Price/Earnings Ratio of 11.83, while rival companies like Goodyear sports Price/Earnings ratio of 18.06. Titan International is also expanding internationally as it launched its new program in India. The company holds 37 percent interest in Wheels of India, through its European subsidiary Titan Europe. The company is now looking to make an offer for the remaining outstanding shares equaling a 14 percent stake in the company. The offer will help the company in exercising better control over its India operations.

Titan International is scheduled to announce its fourth quarter and full year earnings on February 26th.

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