We recently published an article titled Why These 15 Vehicles & Parts Stocks Are Surging In 2025. In this article, we are going to take a look at where The Goodyear Tire & Rubber Company (NASDAQ:GT) stands against the other vehicles and parts stocks.
Certain automotive companies have held up surprisingly well in the current environment, and that’s especially true with companies that supply automotive parts. The high interest rate regime was supposed to crush automotive companies across the board, and early tariffs specifically targeted countries that produced the most automotive parts for the U.S.
Even then. These stocks have done well since high interest rates have made it difficult for low-income consumers to buy new cars. Instead, they have opted for repairing their existing vehicles, which has been a tailwind for automotive parts companies for the past two years. The average age of vehicles was already at a record 12.6 years in 2024, so this tailwind isn’t going away anytime soon.
Customers who have higher incomes have kept on buying new vehicles. It is mostly because of them that consumer spending has held up across the board. Here are the biggest winners from this trend.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Financial Services Stocks that are up the Most in 2025 in another article.
Methodology
For this article, I screened the best-performing vehicles & parts stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A tire manufacturing plant, showing the mechanization and efficiency of the company’s operations.
The Goodyear Tire & Rubber Company (NASDAQ:GT)
Number of Hedge Fund Holders In Q4 2024: 37
The Goodyear Tire & Rubber Company (NASDAQ:GT) is a global mobility company that develops, manufactures, distributes, and markets a wide range of rubber tires and related products.
The company’s stock has performed well in 2025 largely due to its strategic modernization initiatives and product expansion plans. In February 2025, Goodyear announced plans to modernize and add capacity to its Lawton, Oklahoma plant, which will add approximately 10 million units of new capacity for premium tires in 2025 and 2026. This investment is focused on higher rim sizes and additional volume in higher profit, higher margin segments.
Goodyear also revealed plans to introduce five new power lines to markets worldwide and add nearly 200 SKUs in highly profitable segments of the market. These new products will include updates to the WeatherReady, Wrangler, and ultra-high performance Eagle product lines, which are expected to generate returns and greater value at premium prices. CEO Mark Stewart expressed confidence that these additions would build momentum for the second half of 2025 as the new products reach volume in the marketplace.
The company has also taken steps to improve operational efficiency. In January 2025, Goodyear approved a plan to reduce production capacity and costs in the Americas segment, including approximately 850 job reductions at its Danville, Virginia facility. This restructuring is expected to improve Americas segment operating income by approximately $15 million in 2025 and by approximately $65 million thereafter.
The consensus price target of $13.78 implies 25.16% upside.
The Goodyear Tire & Rubber Company (NASDAQ:GT) stock is up 22.33% year-to-date.
Overall GT ranks 11th on our list of vehicles and parts stocks that are surging in 2025. While we acknowledge the potential of GT as an investment, our conviction lies in the belief that 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
