5 Stocks to Sell Now According to Billionaire David Tepper

In this article, we discuss the 5 stocks to sell now according to billionaire David Tepper. To read the detailed analysis and hedge fund performance of his firm Appaloosa Management, along with Tepper’s investment philosophy, skip to 10 Stocks to Sell Now According to Billionaire David Tepper.

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

Number of Hedge Fund Holders: 30

The Goodyear Tire & Rubber Company (NASDAQ:GT) is an Ohio-based tire company that manufactures tires for bicycles, cars, trucks, heavy machinery equipment, and airplanes. It is one of the top four tire manufacturers in the world.

The Goodyear Tire & Rubber Company (NASDAQ:GT)’s revenues declined from the year 2016 to 2019. During the pandemic, the company faced its first 3-year loss of $311 million, and later in 2020, the company posted a significant loss of $1.25 billion. However, the company recently rebounded with the acquisition of Cooper Tire in 2021. The combination of the two companies is expected to generate $17.5 billion in revenue, making it the world’s third largest tire company by revenue. Furthermore, the management expects its operating income to reach $1 billion and operating margins to 5.7% by the end of the year.

The Goodyear Tire & Rubber Company (NASDAQ:GT) is seeing a significant growth catalyst in the form of the growing EV market. The company has a total of 5 to 6 competitors in the market, and in 2021, The Goodyear Tire & Rubber Company (NASDAQ:GT) achieved a 60% win rate on EV tire deals. At the end of the year, Deutsche Bank analyst Emmanuel Rosner said:

“We view Goodyear as a very large beneficiary from the industry shift to EVs, with very favorable economics and strong early market share traction.”

The Goodyear Tire & Rubber Company (NASDAQ:GT) was added to Appaloosa Management’s portfolio in Q1 2020 and all of its shares were sold off by the firm in the June quarter.