BorgWarner (BWA) Stock Sinks As Market Gains: What You Should Know
BorgWarner (BWA) closed at $34.73 in the latest trading session, marking a -0.37% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.45%.
The investment community will be closely monitoring the performance of BorgWarner in its forthcoming earnings report. The company is expected to report EPS of $0.88, down 30.16% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.6 billion, showing a 12.39% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.74 per share and revenue of $14.59 billion, indicating changes of -18.7% and -7.66%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for BorgWarner. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.4% higher within the past month. BorgWarner currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, BorgWarner is currently exchanging hands at a Forward P/E ratio of 9.32. This signifies a discount in comparison to the average Forward P/E of 13.6 for its industry.
It's also important to note that BWA currently trades at a PEG ratio of 1.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Automotive - Original Equipment industry stood at 0.66 at the close of the market yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report
