BorgWarner (BWA) Rises Higher Than Market: Key Facts
In the latest trading session, BorgWarner (BWA) closed at $33.45, marking a +0.69% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.29%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.43%.
Prior to today's trading, shares of the auto parts supplier had lost 7.28% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 7% and the S&P 500's gain of 2.08% in that time.
The upcoming earnings release of BorgWarner will be of great interest to investors. The company's earnings report is expected on February 8, 2024. In that report, analysts expect BorgWarner to post earnings of $0.91 per share. This would mark a year-over-year decline of 27.78%. At the same time, our most recent consensus estimate is projecting a revenue of $3.59 billion, reflecting a 12.61% fall from the equivalent quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for BorgWarner. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.23% higher. BorgWarner currently has a Zacks Rank of #3 (Hold).
Digging into valuation, BorgWarner currently has a Forward P/E ratio of 7.84. This valuation marks a discount compared to its industry's average Forward P/E of 11.2.
We can also see that BWA currently has a PEG ratio of 0.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Automotive - Original Equipment industry had an average PEG ratio of 0.67.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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
