Are Tire Stocks Headed for a Blowout?

S&P thinks stocks in the tire and rubber group may be overinflated, based on forward fundamentals

Tires are rated for driving conditions, taking into consideration weight, weather, and speed. Since June 30, 2006, the S&P 1500 Tires & Rubber subindustry index—which consists of only two issues, Bandag (BDG) and Goodyear Tire (GT)—raced ahead of the overall market, posting a scorching 110% advance (the highest of all 138 subindustry indexes in the S&P Composite 1500) compared to the 1500's jump of nearly 13%.

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