 Right now, Cooper Tire Rubber Inc. NYSE: CTB share price is at 27.45, after a 0.51 drop. Over the past month, the stock went up by 3.59, but over the past year, it actually decreased by 12.08. With questionable short-term performance like this, and great long-term performance, long-term shareholders might want to start looking into the companys price-to-earnings ratio.The stock is currently above from its 52 week low by 98.63. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Auto Parts stocks, and capitalize on the lower share price observed over the year.The PE ratio is used by long-term shareholders to assess the companys market performance against aggregate market data, historical earnings, and the industry at large. A lower PE indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.Depending on the particular phase of a business cycle, some industries will perform better than others.Compared to the aggregate PE ratio of 14.43 in the Auto Parts industry, Cooper Tire Rubber Inc. has a higher PE ratio of 17.9. Shareholders might be inclined to think that Cooper Tire Rubber Inc. might perform better than its industry group. Its also possible that the stock is overvalued.There are many limitations to price to earnings ratio. It is sometimes difficult to determine the nature of the earnings makeup of a company. Shareholders might not get what theyre looking for, from trailing earnings.See more from Benzinga Cooper Tire Rubber: Q1 Earnings InsightsC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 