5 Best Car Repair Stocks to Buy Now

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

Number of Hedge Fund Holders: 36

The Goodyear Tire & Rubber Company (NASDAQ:GT) is a global manufacturer and distributor of tires and related products. The company offers a diverse range of tires for multiple vehicles and applications under different brand names, including Goodyear, Cooper, and Dunlop. Additionally, Goodyear provides retread services for truck, aviation, and off-the-road tires, manufactures tire retreading materials, sells chemical products, and offers automotive and commercial repair services. It is one of the best automotive stocks to invest in. 

On December 4, HSBC started coverage of The Goodyear Tire & Rubber Company (NASDAQ:GT) with a Buy rating, emphasizing the company’s potential to surpass expectations due to a perceived low performance threshold. The analysts, Wesley Brooks and Laisha Zaack, anticipate that Goodyear could benefit from a margin upcycle and deleveraging, making for a compelling combination even without factoring in potential cost savings. Additionally, the analysts highlighted the company’s attractive valuation as a positive factor.

According to Insider Monkey’s third quarter database, 36 hedge funds were bullish on The Goodyear Tire & Rubber Company (NASDAQ:GT), compared to 33 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 4.2 million shares worth $52.3 million. 

Here is what ClearBridge Small Cap Value Strategy has to say about The Goodyear Tire & Rubber Company (NASDAQ:GT) in its Q3 2022 investor letter:

“We exited a number of stocks during the period, including Goodyear Tire & Rubber (NASDAQ:GT). We sold our position in Goodyear due to the cavalcade of concerns including the company’s elevated debt levels, inflationary pressures from higher input prices, continued manufacturing challenges in the auto industry and complications with the company’s manufacturing volume. With substantial exposure to the automotive industry through other portfolio holdings, we elected to consolidate our exposure within those higher-conviction holdings.”