BorgWarner (BWA) Stock Moves -0.78%: What You Should Know
In the latest trading session, BorgWarner (BWA) closed at $33.21, marking a -0.78% move from the previous day. This change was narrower than the S&P 500's 2.37% loss on the day. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the auto parts supplier had lost 9.74% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 18.38% and lagging the S&P 500's loss of 6.51% in that time.
Investors will be hoping for strength from BorgWarner as it approaches its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $1.02, up 27.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.02 billion, up 17.61% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.26 per share and revenue of $15.75 billion. These totals would mark changes of +2.65% and +6.15%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. BorgWarner is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, BorgWarner currently has a Forward P/E ratio of 7.85. Its industry sports an average Forward P/E of 10.13, so we one might conclude that BorgWarner is trading at a discount comparatively.
Investors should also note that BWA has a PEG ratio of 0.29 right now. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.58 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report
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