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We took a close look at the latest |
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Released on Tuesday, October 11, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - Everybody likes cars these days, from large Dodge Rams right down to small, quiet, and environmentally friendly Prius hybrids, but whatever your personal point of view on the best automobiles is, there is one thing everyone can agree on, your car has to have tires.
That is exactly what this small-cap play has in mind. Cooper Tire & Rubber Company (NYSE: CTB) develops and manufactures high-quality replacement tires for your vehicles. The have a market capitalization of about $781 million, and an enterprise value of over $1 billion. At the moment the stock is trading at $12.56 per share (4:00 PM EDT, October 10th, 2011), and has a price that is around 6 times its earnings with an EPS of $1.78 according to recent quarterly statements.
The stock has a beta volatility of 2.40 so it tends to be pretty volatile compared to the market. Running a 1.60 current ratio and a total cash per share of $2.21 Cooper seems to be fairly healthy as far as finances goes. The stock also has a book value per share of $7.28. Technical analysis indicates that the stock is beginning to move into a possible up-trend, with short-term momentum and price indicators showing bullish movement.
Most recently the stock received a nice boost in price due to an announcement from Cooper that it would be raising its prices towards the end of the year, hinting at increased demand for their products. The company currently must compete with large manufacturing firms such as Goodyear and Bridgestone.
One thing that is striking about this stock is just how high it could trade within certain ranges. An 80-day resistance indicates the stock could travel as high as $20.55 per share before trending down again over an equal period; some movement on CTB, a nice play in the rubber market and tire market.
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