10 Worst Performing Affordable Stocks Under $40

2. The Goodyear Tire & Rubber Company (NASDAQ:GT)

Share Price: $8.01

Analyst Upside Potential: 38.58%

Forward P/E Ratio: 8.18

Earnings Growth This Year: 381.00%

Number of Hedge Fund Holders: 36

Year-to-Date Decline: 43.63%

The Goodyear Tire & Rubber Company (NASDAQ:GT) is a global tire manufacturer based in Ohio. The company manufactures a line of tiers for various vehicles including cars, buses, motorbikes, trucks, airplanes, and other heavy machinery vehicles. The company has manufacturing plants in more than 22 countries and operates around 950 retail outlets across the globe.

The stock has plunged more than 43% on a year-to-date basis and ranks among the worst affordable stocks to buy under $40. The major reason for the stock price going down has been the recent quarter Q2 2024, where the company fell short of analyst expectations. Wall Street was expecting revenues at $4.78 billion, however, the company was able to deliver only $4.57 billion. On the other hand, its net sales also took a hit and were down 6.1% year-over-year.

However, this is just a minor part of the story. Talking about the positive highlights, The Goodyear Tire & Rubber Company (NASDAQ:GT) just swung from a loss of $208 million to a profit of $85 million. It also topped analysts’ expectations in terms of EPS growth, Earnings on an adjusted basis of $0.19 per share were ahead of the market consensus of $0.14 per share.

Moreover, management has been able to improve the segment operating income by more than 173% from the previous year. Its Segment operating margins were up across all three geographical segments with the Asia Pacific region being the only region with positive net sales growth year-over-year.

The Goodyear Tire & Rubber Company (NASDAQ:GT) is also popular among hedge funds, it was held by 36 hedge funds in the second quarter with total stakes amounting to more than $321 million.