Hello MarketSmith Community,

I found this stock on the “Breaking out Today” list in the Growth 250 Pattern Recognition folder yesterday. It hadn’t been on my radar prior to the breakout so I’m a little un-prepared with my research. Below is my analysis so far. If anyone can help fill in any gaps, it would be much appreciated. If anyone has any questions about my analysis, I’d be happy to answer.

Best returns,

Richard

Goodyear Tire & Rubber (GT)

Current Earnings: 32% last quarter, 999% a qtr ago (easy comps). Negative eps growth for 4 qtrs prior.

Annual Earnings: 62% 5 yr. growth rate

New Factors: Not sure there is much innovation in the tire industry…but there may be something going on in the auto industry… is there anyone out there with automotive industry experience that can shed some light on this?

Supply & Demand: Below average volume on the breakout, so far. Large supply of floating shares.

Leader or Laggard: Laggard group with only 6 stocks. GT and CTB are the leaders.

Institutional Sponsorship: Flat, but healthy trend of fund ownership (43%).

Market Direction: Market in Correction

Chart Pattern: 5 week flat base with 13% depth – RS line at new high ground