Is The Goodyear Tire & Rubber Company (GT) Destined for Greatness?

In its latest quarter, The Goodyear Tire & Rubber Company (NASDAQ:GT)’s European profit spiked, but growth was strong across all of the company’s geographic regions. Goodyear is looking to push up its international sales by tapping into Asian markets, which are expected to contribute 65% of global automobile sales by 2020. Increased demand for tires in the two-billion-plus-strong Indian and Chinese markets, combined with reduced rubber prices, should help Goodyear reap higher profits in the future.

On the other hand, my Foolish colleague Rich Duprey points out that Goodyear has a long history of controversies. In 2006, the United Steelworkers Union called a strike that cost Goodyear $367 million in just three months. Both parties have now agreed to a master contract, which will benefit about 8,000 employees serving across six manufacturing facilities in the United States. More recently, workers in a French tire factory have filed a suit against Goodyear for closing its facility due to non-profitability. It’s unlikely that Goodyear will return to France now, but labor issues could pose more problems in the future — at least until tires can be made entirely by robots.

Putting the pieces together

Today, The Goodyear Tire & Rubber Company (NASDAQ:GT) has many of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Goodyear Tire and Rubber Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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