BorgWarner (BWA) Stock Sinks As Market Gains: What You Should Know
BorgWarner (BWA) ended the recent trading session at $33.89, demonstrating a -0.24% swing from the preceding day's closing price. This change lagged the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.75%.
The the stock of auto parts supplier has risen by 3.13% in the past month, leading the Auto-Tires-Trucks sector's gain of 1.19% and undershooting the S&P 500's gain of 3.4%.
Investors will be eagerly watching for the performance of BorgWarner in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 8, 2024. In that report, analysts expect BorgWarner to post earnings of $0.87 per share. This would mark a year-over-year decline of 30.95%. Alongside, our most recent consensus estimate is anticipating revenue of $3.57 billion, indicating a 13.07% downward movement from the same quarter last year.
Investors should also note any recent changes 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% upward. At present, BorgWarner boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, BorgWarner is currently exchanging hands at a Forward P/E ratio of 8.1. This signifies a discount in comparison to the average Forward P/E of 11.52 for its industry.
Meanwhile, BWA's PEG ratio is currently 1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.68.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% 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.
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
