It’s that time of year again. And of course, I’m talking about the time of year when people start opening up their wallets to make a slew of holiday purchases ranging from exotic food to gifts to winter clothing to travel accommodations. While holiday spending often becomes quite expensive, most people are happy to dig a bit deeper into their pockets to celebrate family, friends and spirituality.
Giving and receiving gifts is a big part of the holiday celebration for many households. If you somehow manage to survive the holiday season with money left to spend, why not treat yourself to a gift that can literally keep on giving: a solid long-term investment.
When it comes to holiday spending in the retail space, names likeAmazon.com Inc. (NASDAQ: AMZN), Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE: TGT) immediately come to mind. However, while not the typical holiday retail stock, Goodyear Tire & Rubber Co. (NASDAQ: GT), which operates more than 600 retail stores nationwide, could be the top retail stock pick this holiday season.
The fundamentals
After a nearly seven-year bull market rally that has pushed the S&P 500 more than 30 percent higher than it ever reached before, GT currently sports refreshingly attractive valuation metrics. With a miniscule P/E ratio of 3.1, forward P/E of 8.6 and PEG of 0.28, GT offers a much better value than rivalCooper Tire & Rubber Co. (NYSE: CTB), the retail sector as a whole and the overall market.
What’s the catch?
Seasoned investors already know…
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