BorgWarner (BWA) Rises But Trails Market: What Investors Should Know
BorgWarner (BWA) closed the latest trading day at $38.40, indicating a +0.44% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.93%.
Shares of the auto parts supplier witnessed a loss of 7.39% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 8.5% and underperforming the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of BorgWarner in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. On that day, BorgWarner is projected to report earnings of $0.90 per share, which would represent a year-over-year decline of 27.42%. At the same time, our most recent consensus estimate is projecting a revenue of $3.72 billion, reflecting an 8.38% fall from the equivalent quarter last year.
BWA's full-year Zacks Consensus Estimates are calling for earnings of $3.78 per share and revenue of $15.16 billion. These results would represent year-over-year changes of -17.83% and -4.03%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for BorgWarner. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% higher. Right now, BorgWarner possesses a Zacks Rank of #3 (Hold).
Digging into valuation, BorgWarner currently has a Forward P/E ratio of 10.13. This indicates a discount in contrast to its industry's Forward P/E of 12.78.
Investors should also note that BWA has a PEG ratio of 0.88 right now. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.66 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 36% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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
