BorgWarner (BWA) Laps the Stock Market: Here's Why
In the latest market close, BorgWarner (BWA) reached $35.36, with a +1.81% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
The auto parts supplier's stock has climbed by 0.61% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 3.54% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of BorgWarner in its forthcoming earnings report. The company is predicted to post an EPS of $0.88, indicating a 30.16% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.6 billion, down 12.39% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.74 per share and a revenue of $14.59 billion, representing changes of -18.7% and -7.66%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BorgWarner. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. As of now, BorgWarner holds a Zacks Rank of #3 (Hold).
Looking at its valuation, BorgWarner is holding a Forward P/E ratio of 9.28. This denotes a discount relative to the industry's average Forward P/E of 13.59.
Meanwhile, BWA's PEG ratio is currently 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.65.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 147, positioning it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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
