BorgWarner (BWA) Ascends While Market Falls: Some Facts to Note
BorgWarner (BWA) closed the most recent trading day at $39.47, moving +0.03% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.25%.
The auto parts supplier's stock has dropped by 3.52% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 4.71% and lagging the S&P 500's loss of 1.6%.
Investors will be eagerly watching for the performance of BorgWarner in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 2, 2023. The company is forecasted to report an EPS of $0.89, showcasing a 28.23% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.71 billion, down 8.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.76 per share and revenue of $15.17 billion, which would represent changes of -18.26% and -3.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BorgWarner. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, BorgWarner possesses a Zacks Rank of #4 (Sell).
In terms of valuation, BorgWarner is presently being traded at a Forward P/E ratio of 10.51. This represents a discount compared to its industry's average Forward P/E of 13.35.
Meanwhile, BWA's PEG ratio is currently 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 0.69.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 42% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report
