We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where The Goodyear Tire & Rubber Company (NASDAQ:GT) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.
The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.
We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.
A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.
To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.
A tire manufacturing plant, showing the mechanization and efficiency of the company’s operations.
The Goodyear Tire & Rubber Company (NASDAQ:GT)
The Goodyear Tire & Rubber Company is a manufacturer, developer, distributor, and seller of tires and related products and services. The company provides different lines of rubber tires for trucks, motorcycles, farm implements, aircraft, automobiles, buses, and others. It also sells installation products and services online.
As per the company’s recently announced Q4 results, sales went down by 3% YoY. The reason behind the decline in sales was lower volumes. Due to the impact of growth in low-end imports in major markets, unit volume declined by 4% YoY. The firm’s Forward initiatives added $195 million in savings.
On the back of the strong earnings, the company provided a positive future outlook. With the combined contribution of volume growth and price mix in the second half of the year, management anticipates achieving $750 million in gains from its Goodyear Forward initiative in 2025. Due to the increasing raw material costs, global unit volumes are expected to decrease by 2%-3% in Q1 2025.
The company holds a strong manufacturing presence in the U.S., which is seen as a protective factor against tariff concerns. Two weeks ago, Deutsche Bank showed optimism in the stock’s prospects by upgrading it to a Buy with an increased price target of $13. The bank believes that the company is well-positioned to achieve its planned margin improvements and cost savings worth $1.5 billion by 2026.
Overall, GT ranks 4th on our list of top auto parts stocks that could surge On Trump’s auto tariff relaxation. While we acknowledge the potential of GT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.