Cooper Tire and Rubber Shares Plunged: What You Need to Know


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Cooper Tire and Rubber (NYS: CTB) locked up the brakes Thursday and fell 26% in intraday trading.

So what: Revenue grew 15% to $922 million but fell well short of the $980 million analysts expected. More concerning was earnings per share, which fell to $0.18 from $0.70 a year ago but also fell short of the $0.41 analysts expected.

Now what: Raw material prices are putting pressure on earnings along with slow consumer demand. Trailing P/E and forward P/E ratios are hovering around 5, so investors willing to wait out the current pressures may be rewarded. It's tough to buy in today, but as the market settles down I'll keep an eye on shares that could be primed for a rebound.

Interested in more info on Cooper Tire and Rubber? Add it to your watchlist.

At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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