10 Best US Stocks to Buy Under $10

7. Goodyear Tire & Rubber Co. (NASDAQ:GT)

Share Price as of October 16: $8.28

Number of Hedge Fund Holders: 36

Goodyear Tire & Rubber Co. (NASDAQ:GT) develops, manufactures, and markets tires for most applications, including cars, trucks, motorcycles, and airplanes, and also manufactures other rubber-related chemicals. It is known for its innovative tire technology and has a long history in the tire industry.

The Americas region was a key driver of the company’s Q2 2024 success, delivering $241 million in segment operating income. Cost control, improved pricing, and increased volume in larger tire segments contributed to this growth. While challenges persist in smaller rim sizes due to low-end competition, the focus on reducing complexity and investing in high-value segments is expected to strengthen its market position.

Sales in Q2 2024 totaled $4.57 billion, down 6.10% from last year, driven by lower volume and unfavorable price mix due to continuing weakness in commercial truck sales and OE RMI index agreements. Unit volume was 2% lower. Overall, replacement volume declined by 7%, driven by decreases in the Americas. Original equipment volume increased by 13%.

Its new Assurance WeatherReady 2 tire has outperformed leading competitors in wet handling, wet braking, and dry handling. The tire offers a 60,000-mile tread life warranty and is available in various sizes to fit a wide range of vehicles.

Goodyear Tire & Rubber Co.’s (NASDAQ:GT) investment to modernize and expand its Ontario plant is meant to create new jobs, increase production capacity, and make the plant net-zero emissions by 2040. The project is supported by federal and provincial funding.

The company demonstrated strong financial performance in Q2 2024, with a segment operating income of $339 million (7.4% margin). This was primarily due to favorable pricing and raw material costs. The ongoing Goodyear Forward Plan, focused on high-margin segments and SKU rationalization, continues to drive profitability, and positions the company well for success.