BorgWarner (BWA) Declines More Than Market: Some Information for Investors
The most recent trading session ended with BorgWarner (BWA) standing at $38.66, reflecting a -1.43% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.13% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.12%.
The the stock of auto parts supplier has fallen by 3.16% in the past month, lagging the Auto-Tires-Trucks sector's gain of 0.63% and overreaching the S&P 500's loss of 5.53%.
The investment community will be paying close attention to the earnings performance of BorgWarner in its upcoming release. The company is slated to reveal its earnings on November 2, 2023. In that report, analysts expect BorgWarner to post earnings of $0.89 per share. This would mark a year-over-year decline of 28.23%. Alongside, our most recent consensus estimate is anticipating revenue of $3.73 billion, indicating an 8.11% downward movement from the same quarter last year.
BWA's full-year Zacks Consensus Estimates are calling for earnings of $3.76 per share and revenue of $15.22 billion. These results would represent year-over-year changes of -18.26% and -3.65%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for BorgWarner. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. BorgWarner is currently a Zacks Rank #3 (Hold).
Digging into valuation, BorgWarner currently has a Forward P/E ratio of 10.44. This valuation marks a discount compared to its industry's average Forward P/E of 13.14.
One should further note that BWA currently holds a PEG ratio of 0.87. 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. The Automotive - Original Equipment was holding an average PEG ratio of 0.69 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 41% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BorgWarner Inc. (BWA) : Free Stock Analysis Report
